"K-Defense Systems in Global Demand... LIG D&A Selected as Top Pick" [Click e-Stock]

Mirae Asset Securities Sets LIG D&A Target Price at 1.12 Million Won

On October 1, Mirae Asset Securities maintained its "Buy" investment opinion for LIG Defense & Aerospace (LIG D&A), setting a target stock price of 1.12 million won.

Sehun Jung, a research analyst at Mirae Asset Securities, stated, "A premium for missiles, where the industry narrative of rising demand and supply shortages is most evident, is expected to persist." He added, "LIG D&A's guided weapons, which demonstrated overwhelming performance during the U.S.-Iran war, have entered the early stages of expansion beyond the Middle East into Southeast Asia and Europe. Considering the conservative nature of guided weapon production expansion, ongoing facility investments in Gumi and Gimcheon can be interpreted as the company's confidence in robust future demand."

According to Jung, it is anticipated that Cheongung-II will expand into neighboring countries in the Middle East, such as Qatar and Kuwait, with L-SAM exports also likely to increase. In Southeast Asia—where there are notable gaps in medium- to long-range air defense systems—discussions on the introduction of Cheongung-II are underway in countries like the Philippines and Indonesia. He commented, "For these countries, which have limited defense budgets, Cheongung-II, offering both excellent cost competitiveness and performance, is the most attractive option."

He also forecast that the company’s push into Europe is becoming tangible, acting as a key revaluation factor. Jung analyzed that the U.S. is seeking to replenish its domestic inventories, while Europe currently faces clear capacity (CAPA) constraints in its air defense systems. He noted that, as European systems have inherent limitations in intercepting ballistic missiles, LIG D&A's guided weapons can serve as an excellent alternative. He further assessed that LIG D&A is steadily preparing for its European expansion, for example, by pursuing joint development of short-range missiles with Rheinmetall.

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