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.
At-a-glance assessment financial health · growth · profitability · valuation
- 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%.
- The P/E sits above the sector median, reflecting elevated expectations.
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
- 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 ₩79,500 and market cap is ₩870.6 billion.
- The price sits below the 20-day line (₩94,480) and below the 60-day line (₩135,930).
- Trading beneath both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores upward versus downward strength over the past 14 days on a 0-100 scale) is 34.9, a neutral level.
- The one-month change is -29.4%, the three-month change is -50.7%, and the position relative to the 52-week high is -62.8%.
- Relative strength versus KOSDAQ is 82 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 17% of all stocks by strength.
- Over the past three months it lagged the index by 36.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On confirmed 2025 full-year results, the P/E ratio (how many times one year's net profit the price represents) is 56.94x.
- 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 3.50x, 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 | 34.98x | 5.07x | 14.51% |
| Korea Aerospace Industries | 78.66x | 7.99x | 10.16% |
(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 ₩79,500 and the market capitalization is ₩870.6 billion. The price sits below its 20-day moving average (₩94,480) and below its 60-day moving average (₩135,930). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.9, a neutral level. The one-month change is -29.4%, the three-month change is -50.7%, and the position relative to the 52-week high is -62.8%. Relative strength versus the KOSDAQ is 82 (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 83% of all stocks. Over the past three months it lagged the index by 36.5%. 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 -36.52% / 6M -4.85% / 12M +71.01%
Key metrics vs whole-market median
Valuation
The P/E of 56.94x is above the whole-market median (13.81x). The P/B of 3.50x is above the whole-market median (1.15x).
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 (5.0%). The operating margin is 4.9%. The debt ratio is 165.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $83.1M | $113.5M | $137.1M | +20.81% ↓ slower |
| Operating profit | -$2.9M | -$2.0M | $6.7M | — |
| Net profit | $29.1M | $5.2M | $10.1M | +93.29% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $48.7M | $60.5M | $83.1M | $113.5M | $137.1M |
| Operating profit | $841,215 | -$5.1M | -$2.9M | -$2.0M | $6.7M |
| Net profit | -$7.7M | -$1.5M | $29.1M | $5.2M | $10.1M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 20.8% year over year, a sign of growth.
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
- 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.