(290A) Synspective - New Analyst Report 12/24

Synspective is engaged in the satellite data business, which involves developing and manufacturing small SAR satellites, selling Earth observation data and images obtained through the operation of a satellite constellation launched into orbit, and providing solutions utilizing data analysis technology.

Under the Innovative Research and Development Promotion Program (ImPACT) aimed at high-risk, high-impact technology development under the jurisdiction of the Cabinet Office, members who were developing small SAR satellites established the company to implement their technological achievements in society.

Synspective's small SAR satellites have achieved miniaturization of approximately one-tenth in weight compared to conventional large satellites. They feature foldable SAR antennas (deployable slot array antennas), high output, advanced thermal control, enabling miniaturization of satellite size, and achieving imaging capabilities comparable to large SAR satellites.

In terms of cost, compared to large satellites, it is possible to reduce costs by approximately one-twentieth in total launch and manufacturing expenses. This enables constellation formation with a large number of satellites that was previously impossible in terms of costs with conventional satellites, allowing for high-frequency observations at multiple points.

Synspective's satellites are launched aboard rockets from Rocket Lab, a rocket launch operator in the USA, and have conducted a total of 6 launches so far. As prototypes, they launched the first satellite in December 2020, the second in March 2022, and the third in September 2022.

As commercial satellites, they launched the fourth satellite in March 2024, the fifth in August, and the sixth in December. Currently operating satellites 3, 4, and 5, they are involved in acquiring and selling Earth observation data and images, as well as developing solutions based on data analysis. The sixth satellite is under verification after launch and will begin commercial operation from the first quarter of the 2025/12 fiscal year. Satellites are broadly classified into communication, positioning, and Earth observation satellites according to their purposes. Earth observation satellites are further classified into optical satellites and SAR satellites.

The feature of SAR satellites developed, manufactured, and operated by Synspective is that they can acquire data continuously regardless of weather or time.

Optical satellites capture photographs from space, are intuitive and widely used in various web services like Google Earth. However, they are limited by cloud cover hindering visibility during imaging and reduced visibility at night, restricting the frequency of information acquisition. In contrast, SAR satellites emit radio waves that penetrate clouds and observe reflected waves from the ground, enabling continuous data acquisition. They provide information on the shape and properties of terrain and structures, excel in time-series analysis and change detection, making them suitable for capturing continuous changes related to economic and environmental events.

Synspective's revenue mainly consists of data sales and solution provision. Data sales accounted for 54.6% of the revenue in the 23/12 fiscal year, while solution provision accounted for 27.6%. Other sources such as commissioned research from the Ministry of Defense accounted for 17.8%.