After last week's Paris Air Show, the largest air show and aerospace industry exhibition in the world, OHB came back with positive news, contracts and partnerships:

• OHB signed contracts with Thales Alenia Space (TAS) to produce and deliver the propulsion systems for the CHIME & ROSE-L satellites, currently being built by TAS. OHB already supplies the payload for the CHIME satellite (order volume in 2019: €259m) and can now expand its work share for the mission. The contract volume should amount to € 15-20m for both missions. Next to CHIME and ROSE-L, OHB strenghtens its reach into the "Copernicus Expansion" program, (see p.2), showing its leading position in the domain of earth observation.
• constellr has signed a "multi-million € contract" with ESA to realize the "HiVe" earth observation mission. OHB supplies the payload for all satellites (undisclosed contract volume) and also holds a strategic investment of 2.3% in constellr, currently worth c. € 40-60m according to dealroom.
• OHB teamed up with TAS, Airbus Defence & Space and signed the ESA "Zero Debris Initiative". It aims to make space more secure and sustainable. Albeit space debris not being disastrous at the moment, it is becoming an ever more pressing issue, which needs to be adressed by all nations. OHB is already providing the propulsion system for the ESA-funded "Clearspace-1" mission. The space craft should demonstrate in-orbit debris removal by FY25e and would the first of its kind.
• Technology transfer into civil aviation: MTU Aero Engines and OHB's subsidiary MT Aerospace signed a strategic partnership to develop a hydrogen based fuel system for civil aviation. After (1) last year's strategic investment in Deutsche Aircraft Holding, which develops a hydrogen ready short-haul aircraft, (2) the at-equity investment of Aerotech Peissenberg (supplier for MTU, Rolls Royce and GE) in 2011 and with (3) MT-Aerospace supplying water and hydrogen tanks to non-space customers like Airbus, OHB continues to transfer its space technology into the civil aviation sector.

OHB can look back on a successful Paris Air Show 2023. Compared to Advent International's recent acquisition of loss making US peer Maxar Technologies at 3.

6x EV/s

ales (April 2023), OHB's valuation seems undemanding, trading at only 0.7x FY23e EV/sales. Coupled with further positive newsflow ahead, OHB is too cheap to ignore. BUY with an unchanged PT of € 48.00, based on DCF.