"Structurally Growing KAI, Target Price Raised"[Click e-Stock]

Daishin Securities Raises Target Price for Korea Aerospace Industries

From 165,000 Won to 186,000 Won

On August 12, Daishin Securities maintained its "Buy" rating on Korea Aerospace Industries and raised its target share price from 165,000 won to 186,000 won.

Choi Jeonghwan, a researcher at Daishin Securities, stated, "The raise in our target price reflects our upward revision of the company's 2028 earnings estimates." He added, "In terms of revenue growth, Korea Aerospace Industries maintains an advantage over global peers through T/FA-50 exports alone. With the addition of the KF-21 to its export product portfolio, its competitiveness in winning orders is even further strengthened."

Choi gave high marks to the company's multiple pipelines related to the KF-21 project. He explained, "The KF-21 is a system attracting increasing demand, regardless of geopolitical issues, with many countries showing interest." Choi also said that the KF-21 boasts unique market competitiveness, combining a 4.5-generation unit price with expandability beyond fifth-generation capabilities. For countries that lack the capacity to introduce fifth-generation or higher aircraft but still wish to implement manned-unmanned teaming—the core of sixth-generation forces—the KF-21 stands as the only viable option.

He further noted that with orders heavily concentrated in the second half of the year, the company is certain to enjoy strong performance momentum. "Initial deliveries of the FA-50 to Poland and Malaysia are scheduled for 2027, so we estimate that revenue will begin to grow significantly from the third quarter of this year," he explained. "In addition, increased recognition of high-margin CLS revenue from Iraq in the second quarter, combined with exchange rate stabilization, is expected to raise export profit margins compared to the first quarter," he said.

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