Gigarein is experiencing a surge of over 10% in early trading following its contract with the Korea Aerospace Research Institute (KARI) for the development of space components.
As of 9:10 a.m. on July 20, Gigarein's shares were trading at 12,920 won, up 1,630 won (14.44%) from the previous trading day, according to the Korea Exchange.
The increase in stock price is attributed to the contract for the development of space-grade RF connectors and cable components.
On July 16, Gigarein announced that it had signed a contract with KARI for the development and production of prototypes of space-grade RF connectors and cable components as part of the 'Domestic Development Project for Space Components.' Gigarein was selected as the preferred bidder for this project on July 8.
Through this project, Gigarein plans to develop and localize space-grade RF connectors, RF cables, and RF cable assemblies that have previously relied on foreign products using purely domestic technology. The components being developed are intended for use in satellites and space systems.
These components are critical for transmitting high-frequency signals reliably and without loss within satellite payloads, and once launched, they cannot be repaired or replaced. Therefore, they must maintain performance over extended periods in extreme space environments. This necessitates a much higher level of reliability in material selection, design, manufacturing, process management, and verification testing compared to standard industrial components.
The contract is valued at approximately 2.7 billion won, which represents 6.71% of the company's consolidated revenue for the previous year. The contract period runs from July 16 until December 15, 2029.
Following the contract signing, the company will receive an advance payment and will be compensated based on the submission of reports at various development stages and the final delivery of prototypes. The project will be conducted using in-house production methods.
* This article has been translated by AI.
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