[Click eStock] "Intellian Discusses Antenna Supply with LEO Operators...Reason Behind Expansion"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 31st that Intellian Technologies is discussing antenna supply with five low Earth orbit (LEO) operators including Amazon, and is expanding its production capacity to meet the rapidly increasing demand. The investment opinion 'Buy' and the target price of 91,000 KRW were maintained.

Jae-yoon Kim, a researcher at KTB Investment & Securities, said, "Intellian Technologies developed ground antennas, which are the core of the LEO satellite communication business, and supplied antennas to the global operator OneWeb, thereby securing a leading position in the global low Earth orbit satellite antenna market." He added, "On the 30th, an IR conference call was held for institutions, where the main topics were the expansion of the LEO business, the status of orders for OneWeb, and the possibility of acquiring additional customers."

Intellian Technologies began its LEO communication ground antenna supply contract with OneWeb in 2019 and has announced three orders since then. Each contract involves different types of antennas and is based on a minimum guarantee concept. Including the antenna order worth 12 billion KRW announced on the 19th, the backlog of orders for OneWeb exceeds 110 billion KRW.

He explained, "The already contracted orders have started production since July this year, so sales are expected to be recognized in line with OneWeb's service schedule." He also noted, "On the 24th, OneWeb unveiled a compact flat-panel antenna, which is the product of an 82.3 billion KRW antenna order won by Intellian Technologies and is designed to be installed in households."

Researcher Kim explained that Intellian Technologies could have new revenue sources beyond existing customers. He emphasized, "Active discussions on antenna supply are underway with LEO communication operators other than OneWeb," and added, "Based on OneWeb's reference, there is a high possibility of supplying antennas to five LEO operators excluding SpaceX."

He further explained, "The factory construction announcement worth 18 billion KRW on the 23rd is believed to be in preparation for the surge in supply volume to OneWeb and new customer orders." He projected, "From 2022, when the new factory expansion is completed, sales from the backlog of orders for OneWeb amounting to about 110 billion KRW and sales to new LEO operators are expected to begin in earnest."

This content was produced with the assistance of AI translation services.