Intellian Technologies
The author is an analyst for NH Investment & Securities. He can be reached at esshim@nhqv.com -- Ed.
As the global number-one satellite antenna provider, Intellian Tech enjoys sound earnings growth in line with global VSAT market expansion. Its earnings growth should accelerate further going forward alongside the blooming of global LEO satellite communication market.
With new space age underway…
As the world’s leading provider of Very Small Aperture Terminals (VSAT), Intellian Technologies (Intellian Tech) enjoys stable earnings growth and has expanded into the medium earth orbit (MEO)/low earth orbit (LEO) satellite arenas. With major global firms having started to enter the LEO satellite market in earnest, Intellian Tech stands well situated to be a beneficiary. Noting that satellite communication services are being provided to an expanding number of areas this year, we foresee an accompanying rise in the company’s supply volume.
…firm will provide answers, as always
On Apr 21, Intellian Tech announced a W100bn rights offering plan, with funds raised to be spent for R&D, raw material procurement, and debt repayment. Flat panel antenna, which is at the center of its R&D efforts, has been in the spotlight in line with the blooming of the LEO satellite communication market. Noting competitive entry into the budding market, we view the firm’s rights offering as being an opportune pre-emptive investment strategy.
From next year, Intellian Tech is anticipated to reap gateway antenna sales in earnest from Company A, which we assume is Amazon. While it is difficult at this juncture to predict the scale and timing of related sales, it should certainly contribute to Intellian Tech’s mid/long-term growth.
While short-term earnings might fall short of hopes in light of the rights offering and heavier R&D investment, we have high expectations, given that the downstream sector is still at its infant stage, and given that the firm continues to perform solidly in securing clients and developing products.