Getting exposure to space on the ASXI was asked last week about getting exposure to space. Not an easy one to be exposed to and maybe there are better markets and companies out there but there are three on the ASX that sprang to mind. First up is the one that everyone got excited about Electro Optic Systems (ASX: EOS) In the context of the company revenue Space is not a massive part of the business but it is growing. This is the space focus: You would not be buying EOS for its space exposure. It is a defence system provider. Advanced optics, precision control systems, communication technologies. CV19 has taken its toll on EOS with multiple disruptions to the delivery process and limited access to test-firing have hindered sales. The easing of restrictions should free up the pipeline and help EOS get back on track. The stock has popped recently on a UAE order which seems a little sensitive so not much has been reported. Numbers were a little underwhelming to be honest but after a swoon, the market focused on the positives. I would start to get interested below 500c. Kleos (ASX: KSS) KSS is a CDI. This is a Chess Depositary Interest. Basically, a US-focused company traded here on the ASX. KSS is an Earth Observation data-as-a-service company, collecting radio signals with its own satellites and then processing them using its proprietary algorithms to create data products. KSS is targeting a geospatial solutions market worth around US$549bn.
- It sells actionable defence and security data.
- Maritime intelligence
- Environmentally protection market.
- Produces materials with higher specific strength to weight ratio.
- Ultra-high process pressure can reduce composite outgassing, often a limiting factor for use of composites in space.