Aerospace Stocks Decline After Nuriho Launch... Will They Soar This Time?

[Asia Economy Reporter Kwon Jae-hee] Korea's first lunar exploration orbiter, 'Danuri (KPLO·Korea Pathfinder Lunar Orbiter),' was launched into space around 8 a.m. on the 5th, raising expectations for a successful orbital insertion and drawing attention to related stocks.

Related stocks to Danuri include Korea Aerospace Industries (KAI), Hanwha, Hanwha Aerospace, Hanwha Systems AP Satellite, and Satrec Initiative. The main body of Danuri was overseen by the Korea Aerospace Research Institute (KARI), with Hanwha and AP Satellite participating as private companies. Additionally, Hanwha Systems, LEM, and i3 Systems participated in KARI's high-resolution camera project, and SK Broadband was responsible for building the deep space ground antenna system that will handle communication with the Danuri after launch.

On the morning of the 5th, the stock prices of related companies were subdued, appearing to take a breather after previous gains. As of 9:20 a.m., Hanwha traded at 28,200 KRW, down 0.70% from the previous trading day, but this is about 17% higher than the low on July 21. At the same time, Hanwha Aerospace was down 0.16% to 61,700 KRW, which is approximately 38% higher than the low on July 20. Hanwha Systems rose 1.40% to 14,500 KRW, about 12.40% above the low on July 20.

With the initial phase of Danuri's launch proceeding smoothly, expectations for further gains in related stocks are growing. However, as seen in the case of Nuri, stock prices of related companies sometimes fall after a successful launch, leading to assessments that the space event effect is still limited in the short term.

In fact, on June 22, the day after the Nuri launch, Hanwha Aerospace closed down 9.48% at 46,800 KRW compared to the previous trading day. On the same day, KAI's stock price also fell 3.92% to 51,500 KRW. AP Satellite and Satrec Initiative, listed on the KOSDAQ market, plunged 25% and 13.85%, respectively, compared to the previous day.

Yoon Chang-bae, a researcher at KB Securities, said, "The final 'blue ocean' for humanity is space, and the space industry market is still in its early stages, similar to the electric vehicle market in the mid-2010s," adding, "However, since expectations have been priced in and stocks have risen in advance, stock prices may weaken after the launch due to the disappearance of the material factor."

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