Satrec Initiative (099320) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Satrec Initiative is a company that designs and builds Earth-observation satellites in-house. Delivering satellite bodies and high-resolution optical cameras and electro-optical payloads makes up a large part of revenue, and it holds a vertical chain that extends to ground-station systems and image-processing software, plus satellite-imagery sales (SIIS) and image-analysis (SIA) subsidiaries. In March and May 2026, successive satellite-imagery and satellite-system supply contracts showed its overseas sales channels widening; after the April 29 preliminary 2025 consolidated results confirmed a swing to an operating profit (₩10.2 billion), the May 13 quarterly report confirmed a Q1 2026 loss. What stands out is that it holds a rare vertical chain — building satellite bodies and payloads itself — with revenue rising for a fifth year and a net-cash position. On the other side, the operating margin is thin at around 5%, it slipped back into the red in Q1, and net profit is heavily swayed by one-off items, so its value rests on its order backlog and the pace at which satellite imagery turns to profit.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Space, Satellites & Drones” (Shipbuilding, Machinery, Defense & Power Equipment · Defense & Aerospace), a type typically read first through EV/Sales.
Space, satellite and drone businesses front-load heavy development and early investment while profits arrive later, so with earnings thin or absent an earnings multiple offers little. That makes EV/Sales — enterprise value against revenue — the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 20.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 7.1% lower than a year earlier.
- ROE is 6.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.9%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha Aerospace 33.63% (corporate)
Controlling bloc incl. related parties 37.52%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis Reading
Satrec Initiative is a company that designs and builds Earth-observation satellites in-house. A large part of revenue comes from making these satellite bodies and their core payloads (high-resolution optical cameras and electro-optical equipment) and delivering them to domestic and overseas governments and institutions. Added to this is the supply of ground-station systems that operate the satellites and image-processing software. Two subsidiaries are also axes. One is satellite-imagery sales (SIIS), which sells imagery taken by satellites; the other is image analysis (SIA), which processes that imagery into information using artificial intelligence. With the March 2025 launch of SpaceEye-T, a self-developed 30cm-class ultra-high-resolution commercial satellite, it now holds a vertical chain that builds satellites, launches them, sells imagery, and even analyzes it. Because most revenue is project-based order work, quarterly results swing a lot with the size and progress rate of a single contract.
The latest close is ₩74,500 and the market capitalization is ₩815.9 billion. The price sits above its 20-day moving average (₩74,185) and below its 60-day moving average (₩103,653). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 45.9, a neutral level. The one-month change is -8.1%, the three-month change is -56.9%, and the position relative to the 52-week high is -65.2%. Relative strength versus the KOSDAQ is 80 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 80% of all stocks. Over the past three months it lagged the index by 33.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On confirmed 2025 full-year results, the P/E ratio (how many times one year's net profit the price represents) is 53.36x. It looks high, but this company's net profit swings widely from year to year, so it is hard to call it expensive or cheap on this multiple alone. The P/B (how many times net assets the price represents) is 3.31x, on the low side versus the peers noted later. ROE (how much is earned on equity in a year) is 6.1%, still thin. The operating margin is also thin at 4.9%. The debt ratio (debt against equity) of 165% is not low, but net borrowings (total borrowings minus cash) are minus ₩75.9 billion — a net-cash position, meaning it holds more cash than debt, so financial risk is not large. One thing to note is that operating profit only just turned positive in 2025 — an early phase. Earnings multiples tend to look exaggerated at such an inflection stage.
Five-year revenue rose every year, from ₩73.4 billion in 2021 to ₩91.4 billion in 2022, ₩125.4 billion in 2023, ₩171.3 billion in 2024, and ₩206.9 billion in 2025, a 28.4% average annual gain over the past two years. Top-line growth is clear. Earnings are a different grain. Operating profit passed through losses in 2022-2024 and swung to a profit of ₩10.2 billion in 2025 — a signal that revenue is beginning to clear the breakeven of fixed costs. Net profit, however, jumped around: ₩43.9 billion in 2023, ₩7.9 billion in 2024, and ₩15.3 billion in 2025, because project revenue-recognition timing and non-operating, one-off items are mixed in. Q1 2026 was back in the red, with revenue of ₩37.2 billion (-7.1% YoY) and an operating loss of ₩2.0 billion. Satellite manufacturing has a seasonality that concentrates revenue in the second half, so an early-year quarterly loss does not necessarily signal the annual direction. The key this year is how much of the second-half orders is recognized as revenue.
The core of the recent flow is orders and results. Single-sale supply-contract disclosures came in succession in March and May 2026. As satellite-imagery and satellite-system supply contracts, they show the overseas sales channels of the core business widening. Since a satellite contract is booked as revenue split across several quarters, when and how much is recognized matters more than the headline amount. On the results side, the April 29 fair disclosure of preliminary 2025 consolidated results confirmed a swing to an operating profit (₩10.2 billion). Then the May 13 quarterly report confirmed a Q1 2026 loss. The source of these facts is not general news articles but the original texts of these disclosures.
Start with the strengths. Few companies in Korea build satellite bodies and payloads in-house. Added to that is imagery sales and analysis, forming a vertical chain. Revenue has risen for a fifth year, and in 2025 it cleared breakeven with an operating profit. In a net-cash position, its financial burden is also small. The P/B is lower than peers. The cautions are also clear. With an operating margin of around 5%, results swing on small cost changes. Q1 2026 was back in the red. Net profit is heavily swayed by one-off items, so the reliability of the earnings multiple is low. In sum, this stock's value rests less on the current earnings multiple than on the order backlog and the pace at which the satellite-imagery business turns to profit. It is strong when second-half orders flow through to revenue and profit, and if recognition is delayed or loss-making quarters repeat, the hopes riding on the space theme are put to the test.
🔎 Valuation vs peers Inconclusive
Officially classified under 'aircraft,' but in substance it is space and satellites. So it is compared against Korea-listed firms whose businesses are closer to space, defense, and aerospace. Hanwha Aerospace is the largest shareholder and works in defense and space; Korea Aerospace Industries (KAI) works in aviation and space.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 38.68x | 5.46x | 17.56% |
| Korea Aerospace Industries | 78.71x | 7.85x | 10.63% |
(a) Position versus peers: a P/B of 3.66x is lower than Hanwha Aerospace (5.94x) or Korea Aerospace Industries (8.21x). Relative to net assets it is actually on the subdued side. ROE of 6.1% is lower than the two peers, because earnings have only just turned positive — an early phase. (b) Premium/discount: space and satellite names commonly carry high multiples reflecting growth expectations, but on a P/B basis Satrec Initiative sits where those expectations are, if anything, less embedded. (c) Limits of the trailing multiple: the P/E of 59.5x is on confirmed 2025 earnings, but with net profit swinging from ₩43.9 billion (2023) to ₩7.9 billion (2024) to ₩15.3 billion (2025), this multiple is not very representative. No official annual earnings plan is contained in the disclosures, and net profit is swayed by one-off items, so a forward-earnings multiple is also hard to pin down precisely. So on a current-earnings basis it is more honest to hold judgment than to draw a firm conclusion. This stock should be read by its order backlog rather than an earnings multiple.
Price history Close · MA20 · MA60
The latest close is ₩74,500 and the market capitalization is ₩815.9 billion. The price sits above its 20-day moving average (₩74,185) and below its 60-day moving average (₩103,653). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 45.9, a neutral level. The one-month change is -8.1%, the three-month change is -56.9%, and the position relative to the 52-week high is -65.2%. Relative strength versus the KOSDAQ is 80 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 80% of all stocks. Over the past three months it lagged the index by 33.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -33.71% / 6M -45.68% / 12M +51.03%
Key metrics Computed vs whole-market median
Valuation
The P/E of 53.36x is above the whole-market median (12.97x). The P/B of 3.31x is above the whole-market median (0.84x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 6.1%, above the whole-market average (3.0%). The operating margin is 4.9%. The debt ratio is 55.2%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $88.1M | $120.3M | $145.4M | +20.81% ↓ slower |
| Operating profit | -$3.1M | -$2.2M | $7.2M | — |
| Net profit | $30.8M | $5.6M | $10.7M | +93.29% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $51.6M | $64.2M | $88.1M | $120.3M | $145.4M |
| Operating profit | $891,642 | -$5.4M | -$3.1M | -$2.2M | $7.2M |
| Net profit | -$8.1M | -$1.6M | $30.8M | $5.6M | $10.7M |
| Revenue CAGR | 4-yr avg 29.55% | ||||
Revenue rose 20.8% year over year (2023 ₩125.4 billion → 2024 ₩171.3 billion → 2025 ₩206.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 29.5%. The two-year revenue CAGR is 28.4%. In the most recent quarter (Q1 2026), revenue was 7.1% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 20.8% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-21UpdateFiled a corrected disclosure of a single-sale supply contract covering satellite-imagery supply to an overseas institution.A medium-term effect. Confirms that overseas supply of SpaceEye-T-based satellite imagery is leading to repeat orders. It points toward broadening the future revenue base. Source
- 2026-04-29EarningsFair-disclosed preliminary consolidated 2025 operating results. Revenue ₩206.9 billion (+20.8% YoY) and operating profit ₩10.2 billion, a swing to profit.A medium-term effect. As the first profit after years of operating losses, it is a signal that top-line growth is starting to flow through to earnings. Source
- 2026-05-13EarningsFiled the Q1 2026 quarterly report. Revenue ₩37.2 billion (-7.1% YoY) and an operating loss of ₩2.0 billion, a seasonally weak quarter.A short-term effect. Satellite-manufacturing revenue tends to be recognized more heavily in the second half, so a Q1 loss does not necessarily signal the annual trend, but whether the profit continues needs second-half confirmation. Source
- 2026-03-20UpdateDisclosed a single-sale supply contract related to satellite imagery and satellite systems.A medium-term effect. With order disclosures continuing from early in the year, it shows the order backlog for project-based revenue being filled. Source
- 2026-03-16FilingFiled the 2025 business report. The official annual document containing the swing to annual profit and the business and financial structure.A medium-term effect. It is the reference point for interpreting confirmed results and lets one verify the revenue composition of the satellite business and the subsidiary structure. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-21Single supply/sales contract (amended)
- 2026-05-14Single supply/sales contract (amended)
- 2026-05-13PeriodicQuarterly report
- 2026-05-11OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-06PeriodicAnnual business report (amended)
- 2026-03-24Shareholders' meeting notice
- 2026-03-20Single supply/sales contract (amended)
- 2026-03-16PeriodicAnnual business report
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Audit report
- 2026-03-05OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.