[Edaily Reporter Kim Hyung-il ] LS SECURITIES forecasts that Spacei-T export and leasing revenues will drive growth for Satrec Initiative Co., Ltd.(099320), driven by rising demand for defense reconnaissance satellites amid increasing global security threats. The firm initiated coverage with a “Buy” rating and a target price of 120,000 won.

On the 15th, Lee Jae-kwang, an analyst at LS SECURITIES, stated, “We expect revenue from the export and leasing of Spacei-T—which offers a resolution of 25 cm, the highest level among commercial-grade satellites—to drive growth, driven by rising demand for defense reconnaissance satellites amid escalating global security threats.”

Satrec Initiative Co., Ltd.’s order backlog as of the end of the second quarter stood at 557 billion won, a 61% increase compared to 346 billion won at the end of 2025. This is attributable to the 283 billion won export order for satellite imaging acquisition equipment announced in February of this year.

The analyst noted, “Although the contract term is approximately nine years, considering that about 80% of revenue from sales contracts is typically recognized during the approximately four-year production period, we believe this will impact Satrec Initiative Co., Ltd.’s revenue growth,” adding, “Since this is an export deal, double-digit profitability is expected, and it is anticipated to serve as a factor in improving overall profitability.” He added, “If rising global security threats persist, we believe there is a high likelihood of additional exports in the future.”

He also projected that increased revenue from leasing the company’s own satellites would contribute to earnings growth. Satrec Initiative Co., Ltd. deployed Space-i-T into orbit in March 2025. The analyst explained, “According to media reports, the company is known to have signed lease agreements in September 2025 and June 2026,” adding, “Since these are not included in the order backlog, it is difficult to determine the contract amount or duration.”

Rental revenue was estimated based on similar overseas cases. The analyst stated, “Generally, for the leasing of top-tier reconnaissance satellites, assuming full coverage is sold, total revenue over a 4- to 5-year contract period would be approximately 120 billion to 200 billion won,” adding, “Considering that profitability in this sector is at least 50%, we expect this to have a significant impact on future earnings growth.”

The possibility of deploying additional satellites was also cited as a growth factor. The analyst noted, “To reduce the satellite’s revisit cycle, a constellation of at least four satellites is required,” and predicted, “We can also expect growth from future additional deployments.”