Model Solution, a subsidiary of Korea and Company listed on the KOSDAQ, has joined the "SpaceX value chain" by supplying samples of equipment related to SpaceX's low-orbit satellite internet service, Starlink.
According to investment banking sources on June 12, Model Solution has recently completed the supply of initial mock-ups and prototypes of Starlink satellite terminals and Wi-Fi router equipment to SpaceX.
These products have reportedly moved beyond the initial research and development stage to testing for actual production processes. Model Solution is currently undergoing full-scale production testing with SpaceX, and if successful, it is expected to be incorporated as an official supplier, potentially leading to large-scale production contracts.
The Starlink satellite terminal kit is essential communication equipment for receiving satellite signals on the ground, while the Wi-Fi router is a key device for transmitting wireless internet signals.
The rising importance of satellite terminals and Wi-Fi routers within the Starlink supply chain is attributed to the unique communication structure of low-orbit satellite internet and rapid subscriber growth. Unlike traditional ground communication networks that rely on large base station infrastructures, Starlink connects users directly through a structure of "space satellite → ground user terminal → Wi-Fi router → smart devices." Individual subscribers must install terminals and routers in their homes, ships, aircraft, or vehicles to access the internet, effectively replacing the role of base stations with subscriber antenna equipment, which means the number of subscribers directly correlates with the demand for terminals.
As of June 5, the number of Starlink subscribers worldwide surpassed 12 million, up from about 10.3 million at the end of the first quarter, with a monthly increase of 1 million subscribers. As service continues to expand into remote areas such as islands and mountainous regions, the demand for satellite terminal kits to attract subscribers is expected to skyrocket. Securing a foothold in the equipment supply chain could translate into significant long-term production revenue.
Model Solution's ability to partner with SpaceX stems from its robust technological capabilities and comprehensive restructuring as a subsidiary of a large corporation. In 2018, Korea and Company acquired a 75% stake in Model Solution as part of its diversification strategy to secure future growth engines. Since joining the group, Model Solution has transformed from a simple prototype manufacturer into a comprehensive business solution provider, encompassing product development and contract manufacturing.
According to the Financial Supervisory Service's electronic disclosure system, Model Solution's revenue for the first quarter was approximately 18.7 billion won, with contract manufacturing (TSB) accounting for 23.3% (about 4.4 billion won) and injection molding and rapid tooling (IMB) accounting for 37.4% (about 6.9 billion won), raising the proportion of revenue from mass production to over 60%. This shift from a traditional design prototype focus to a hardware comprehensive solution provider has been positively evaluated. Thanks to this portfolio diversification, first-quarter revenue increased by 14% year-on-year, while operating profit (748 million won) and net profit (1.9 billion won) surged by 46% and 225%, respectively, marking an earnings surprise.
This supply is expected to attract market attention as it coincides with SpaceX's scheduled IPO on June 12, U.S. time. While existing aerospace-themed stocks have relied on somewhat vague expectations, Model Solution has secured a solid performance and financial momentum through its supply of distribution equipment to SpaceX.
An investment banking source noted, "We should pay attention to the trend where battery cell companies like Samsung SDI and LG Energy Solution entered Tesla's core supply chain and grew into global giants, becoming key stocks in the domestic market. If Model Solution transitions from a one-time sample supply to actual mass production, it could emerge as a central player in the domestic aerospace equipment and communications sector, coinciding with SpaceX's listing."
* This article has been translated by AI.
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