Mynaric (M0Y.DE) is operating in industrial laser communications business, producing optical communication terminals for the space, aerospace and mobile industries. The company can be well positioned for the new initiative to build a constellation of satellites by the European Union:
- Laser communication networks provide connectivity, enabling ultra-high data rates and secure, long-distance transmission between moving objects for wireless ground, mobile, aerospace and space applications;
- Mynaric's CONDOR optical communication terminals are specifically designed for mass deployment as part of government and commercial satellite constellations. They have already been selected as part of many leading U.S. government programs, such as the SDA Tranche 1 Transport Layer, the SDA Tranche 1 Tracking Layer and the DARPA Space-BACN program. Mynaric has a track record of cooperation with US defense industry giant L3Harris, among others;
- Negotiators from the European Parliament and member states have agreed that the satellite constellation will receive €2.4 billion from the EU budget in the coming years, as well as contributions from the European Space Agency (ESA) and private investment. The constellation will provide critical infrastructure protection, situational awareness and support for outreach and crisis management.According to the November 17 agreement, the satellite network will use start-ups to build 30% of all its own infrastructure.
- As a leading company in the niche industry of laser communication systems for satellites with the ability to design and manufacture in Europe, and with its strategy of advanced products to a range of government and commercial customers, Mynaric appears to be positioned as a potential beneficiary of the EU program.
"Space is indeed a highly desirable area where the European Union needs to guarantee its core interests. And our space technologies have become strategic capabilities for our citizens, for the resilience of our economies and, of course, for our armies (...) After today's agreement in the trilateral talks (Commission, Council, Parliament), we will start work on the implementation of this important project as of tomorrow." - Thierry Breton, EU Commissioner for the Internal Market, commented.
- With the IRIS (Infrastructure for Resilience, Interconnection and Security by Satellites) satellite network, the EU also wants to provide secure communications for businesses and citizens, which will complement the already existing Galileo positioning and synchronization navigation constellation and Copernicus earth observation satellite systems.
"We are excited that the EU has agreed to establish its own secure satellite communications constellation, and we applaud the decision to entrust start-ups with building much of the infrastructure (...) We believe that optical inter-satellite links are key to establishing secure communications services from space, and Mynaric offers the industrialized optical communications terminals necessary to establish such links. We stand ready to support Europe's ambitions for sovereign and secure satellite communications services as needed, and we would be delighted to supply Europe with our highly capable and competitive products, which have already been selected for the US government's strategic satellite networks." - Tina Ghataore, CCO of Mynaric, commented on the new EU decisions.
Mynaric (M0Y.DE) stock chart, H1 chart. Mynaric is a company with a negligible capitalization, which currently stands at less than €90 million. A large project underway in the EU has the potential to be a catalyst for growth for the company if it receives multimillion-dollar contracts and an additional source of revenue. The nearest resistance is the 50-session average (black), which runs around €18 per share. The company's shares have been in a downtrend since the beginning of the year. The company's price-to-cash ratio currently stands at 1.9, its debt-to-asset ratio at 0.13. The company's biggest challenge will be to generate net profits and expand into other markets with the base of its revolutionary devices. Source: xStation5
