[Edaily Reporter Shin Ha-yeon ] As Elon Musk’s SpaceX reported earnings that exceeded market expectations, investor interest has shifted toward domestic aerospace-related stocks. While it was actually artificial intelligence (AI) and the satellite internet service Starlink—rather than rocket launches—that drove SpaceX’s earnings, the interest stems from expectations that the expansion of these related businesses could lead to increased satellite production and Starship launches. However, as domestic related stocks—which had surged in tandem immediately after the earnings announcement—soon showed mixed performance, calls are growing to carefully assess actual supply contracts and their contribution to revenue.

According to MP Doctor and others on the 24th, on the 23rd, Kencoa Aerospace Corporation(274090)closed at 10,220 won, up 1.39% from the previous trading day. In contrast, Life Semantics Corp.(347700)closed at 20,000 won, down 3.15%; HVM CO.,LTD.(295310)closed at 61,500 won, down 0.97%; and YJ LINK Co.,Ltd. closed at 3,120 won, down 2.35%.

The mood was different on the 21st, immediately after SpaceX’s earnings were released. On that day, Kencoa Aerospace Corporation rose 7.92%, and other stocks such as Sphere (3.23%), HVM CO.,LTD. (2.81%), and YJ LINK Co.,Ltd. (3.03%) all showed strong gains. Buying interest also surged for Mirae Asset Venture Investment Co., Ltd. and MIRAE ASSET SECURITIES, both of which hold investments in SpaceX. However, as profit-taking selling emerged afterward, the performance of related stocks diverged depending on the individual stock.

On the 20th (local time), SpaceX announced that its third-quarter revenue reached $14.575 billion, a 161% increase from the same period last year. Operating income stood at $2.791 billion, marking a return to profitability from a loss in the prior-year period, while net income totaled $4.4 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 306% to $8.809 billion.

What stands out is the business segment that drove these results. SpaceX’s third-quarter space business revenue totaled $1.767 billion, rising only 6% year-over-year, and the segment posted an operating loss of $7 million.

In contrast, revenue for the Connectivity segment—which includes Starlink—rose 69% to $5.248 billion, with operating income reaching $2.367 billion. Revenue in the Superintelligence (SI) segment surged 830% year-over-year to $7.56 billion, and the segment shifted from an operating loss of $1.722 billion to a profit of $431 million. The company’s business structure is rapidly expanding from a rocket launch provider to a firm that encompasses both satellite communications and AI infrastructure.

The reason domestic aerospace stocks are drawing attention is that this growth in AI and Starlink could ultimately lead to the expansion of space infrastructure. As the number of Starlink subscribers and data usage increases, more satellites will need to be deployed into orbit, and the production and launches of Starship—which carries them—are also likely to increase.

In fact, during its first revenue-generating commercial mission using Starship in the third quarter, SpaceX placed 26 Starlink V3 satellites into orbit. According to the company, the downlink capacity added by a single Starship launch is approximately 10 times that of a conventional Starlink launch using a Falcon 9. This marks the transition of Starship—which had previously been limited to test flights—into a commercial transport vehicle.

Consequently, in South Korea, materials, parts, and equipment companies directly linked to SpaceX’s production expansion are attracting the most attention.

A prime example is Sphere. Sphere supplies special alloys to a major U.S. aerospace launch company. On the 14th, the company announced a special alloy supply contract worth 28.53942 billion won. This amount accounts for 29.84% of last year’s revenue. However, the specific name of the contracting party was not disclosed at the client’s request.

The securities industry is focusing on the possibility that SpaceX’s expansion of Starship production could lead to growth in Sphere’s aerospace business. Hong Ye-rim, an analyst at Korea Investment & Securities, previously predicted, “If the 14th flight is successful, Starship will be able to transition from a test launch vehicle in the development stage to a commercial launch vehicle capable of transporting Starlink V3.”

She added, “Tubing is used in everything from launch vehicles to launch pads, Mega Bays, propellant storage and supply facilities, and production facilities,” highlighting the potential for increased supply volumes driven by the expansion of spacecraft production and launch infrastructure. In fact, the 14th Starship flight successfully completed its first commercial mission by deploying 26 Starlink V3 satellites into orbit.

HVM CO.,LTD. is also connected through the supply chain. In May, Sphere and HVM CO.,LTD. signed a 10-year long-term exclusive supply agreement to ensure a stable supply of advanced materials to space launch vehicle customers. Under this arrangement, HVM CO.,LTD. produces advanced metals while Sphere manages the global supply chain.

Kencoa Aerospace Corporation is directly participating in the SpaceX supply chain through its U.S. subsidiary. In June, the company announced that it is one of the few South Korean publicly traded companies supplying components to both SpaceX and Blue Origin launch vehicles. Its U.S. subsidiary, California Metal & Supply, supplies specialty titanium raw materials used in the Falcon 9 and other vehicles.

YJ LINK Co.,Ltd. is connected through production equipment rather than materials. As a manufacturer of surface-mount technology (SMT) smart process equipment, the company has a track record of supplying equipment such as loaders and unloaders to SpaceX’s production lines. In addition to SpaceX, it counts global manufacturers like Tesla among its clients, so there is interest in whether additional equipment orders will be placed as spacecraft and satellite production volumes expand.

However, SpaceX’s strong earnings alone do not guarantee increased earnings for related Korean stocks. While SpaceX’s stock price surged 7.79% on the 21st, the day after the earnings announcement, it plummeted 9.14% on the 22nd, closing at $144.75. As concerns resurfaced regarding the massive AI investment costs of global Big Tech companies, including Meta, the burden of SpaceX’s large-scale investments also came into focus.

SpaceX’s third-quarter capital expenditures totaled $19.593 billion, nearly three times the $6.88 billion recorded in the same period last year. Of this amount, investments in the SI division alone reached $16.444 billion. In essence, massive capital investment is occurring alongside earnings growth.

Analysts suggest that whether domestic related stocks will see further gains depends not so much on their label as “SpaceX-related stocks” but rather on how effectively the expansion of Starship and Starlink production translates into actual orders. While demand for materials and production facilities is likely to grow as Starship’s commercialization gains momentum, there will be variations in supply relationships and revenue contributions depending on the specific company.

Researcher Hong predicted, “As the deployment of Starlink V3 gains momentum, investment in spacecraft production and launch infrastructure could expand.”