LIG D&A Benefits from Rising Demand for Air Defense Missiles [Click e-Stock]

Kiwoom Securities Raises Target Price
from 1.25 Million Won to 1.35 Million Won

On June 18, Kiwoom Securities maintained its "Buy" investment rating on LIG Defense & Aerospace (LIG D&A) and raised its target price from 1.25 million won to 1.35 million won.

Han-Gyul Lee, an analyst at Kiwoom Securities, stated, "Second-quarter operating profit is expected to meet market expectations, and it is time to pay attention to the expanding order opportunities driven by the rising global demand for air defense missiles."

The analyst forecasted that LIG D&A's operating profit for the second quarter would reach 107.9 billion won, in line with market consensus. This represents a 39.1% increase compared to the same period last year. He also projected that exports would show solid growth, with export sales reaching 333.8 billion won, as the delivery of the third Cheongung II battery to the United Arab Emirates (UAE) was completed smoothly. This figure is up 103% year-on-year. However, he estimated that the export ratio would decline by about 6 percentage points to 28%, due to the high base effect from the previous quarter. The analyst added, "With domestic R&D and mass production projects proceeding smoothly, the overall earnings growth trend for the company is expected to continue."

Order opportunities are also expanding. The analyst explained that, in addition to the company's main export market in the Middle East, inquiries about introducing Cheongung II are increasing in Southeast Asia, and the order pipeline is anticipated to grow in Europe through cooperation with Rheinmetall. Furthermore, the Cheongung II's performance has been proven in real combat during the Middle East conflict, leading to ongoing negotiations for its introduction in several Middle Eastern countries, including Qatar and Kuwait. Orders for Cheongung II destined for the Middle East are expected to be finalized in the second half of this year, and both Indonesia and Malaysia are also pursuing its adoption.

This content was produced with the assistance of AI translation services.