Japanese space companies: QPS positive rating, Synspective and SKY Perfect JSAT neutral, ispace cautious rating (Morgan Stanley)
Morgan Stanley initiated coverage of four Japanese space companies, giving the industry an "In-Line" view.
Morgan Stanley initiated coverage of four Japanese space companies, giving the industry an "In-Line" view. The report believes that the Japanese space industry has geographical and supply chain advantages, but it is difficult to reduce costs in mass production and generally requires external capital. The market's attention to the space field has increased, but individual stocks have become significantly differentiated. The implication of the potential transaction is that investors are advised to focus on QPS, which is asset-light and financially resilient, remain cautious on Synspective, Astroscale and ispace, which rely on fundraising, and hold SKY Perfect JSAT as core stocks. One-sentence conclusion: Japan's space industry is in the early stages of development and has long-term potential, but there are huge differences between individual stocks. QPS with a clear business model and solid financial status should be prioritized, and be cautious about other companies that require continued financing. Positive/Negative: Positive for QPS Institute; neutral for SKY Perfect JSAT and Synspective; negative for ispace. The current market enthusiasm for Japanese space stocks may be high, but its financing risks and profitability timelines may be insufficiently priced. Catalysts: 1) QPS’ satellite launch and commercialization progress; 2) support from the Japanese government’s Space Strategy Fund; 3) subsequent financing and order announcements by various companies.