[Featured Stock] LIG Nex1 Rises 3.99% on 'Export Expansion Expectations'
The stock price of LIG Nex1, expected to expand exports amid the growing defense industry market, is on the rise.
As of 9:25 a.m. on the 17th, LIG Nex1 was trading at 287,000 KRW, up 11,000 KRW (3.99%) from the previous trading day.
DB Financial Investment raised the target price for LIG Nex1 to 330,000 KRW, citing expected export expansion and stable earnings growth. The buy rating was also maintained.
Jaeho Seo, a researcher at DB Financial Investment, said, "LIG Nex1 is a company possessing precision-guided weapons such as anti-tank and anti-air missiles, and the necessity for defense systems has been confirmed amid the Russia-Ukraine war," adding, "Demand will continue amid the arms race trend among various countries."
Researcher Seo added, "Based on an order backlog of approximately 20.1 trillion KRW, a stable upward trend in earnings is expected to continue until 2030," and "Especially in 2025-2026, the mass production effects of the M-SAM2 exports to the United Arab Emirates (UAE) and Saudi Arabia will be recognized simultaneously, leading to clear growth in both sales and operating profit." He also forecasted, "The export ratio within sales is expected to rise to 33% by 2026."
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Regarding orders, Researcher Seo analyzed, "Including exports to the United States, the unmanned system pipeline extending to Haegum-3 (unmanned surface vessel), and exports to Middle Eastern countries with strong intentions to introduce L-SAM mass production contracts for the Korean military, additional exports are expected due to increased weapon demands such as Singung, Haegung, and Hyeongung."
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