[Click eStock] “LIG Nex1, Orders and Performance at the Same Time”

This Year's Performance Expected to Meet Consensus
Yujin Investment & Securities "LIG Nex1 Target Price Raised from 54,000 KRW to 72,000 KRW"

LIG Nex1 Cheongung

[Asia Economy Reporter Gong Byung-sun] LIG Nex1 is expected to report fourth-quarter earnings this year that meet market consensus. Furthermore, the company is positioned to secure both orders and earnings going forward.

On the 14th, Eugene Investment & Securities estimated LIG Nex1's Q4 sales to increase by 21% year-on-year to 589.3 billion KRW, and operating profit to rise by 34.9% to 28.3 billion KRW. These figures are in line with the consensus.

Jeong Eui-hoon, a researcher at Eugene Investment & Securities, said, "Steady sales growth continues in the precision strike sector," adding, "The surveillance and reconnaissance sector, which underperformed in Q3, is expected to recover due to revenue recognition from last year's projects." Additionally, due to the nature of the defense industry, orders tend to concentrate in Q4, and including the Jangbogo-3 sonar system contract announced on the 13th, total orders are expected to reach approximately 7.9 trillion KRW, an 8.9% increase compared to the same period last year.

Simultaneous achievements in orders and earnings are anticipated. The United Arab Emirates (UAE) Ministry of Defense has actively expressed its intention to purchase the domestic medium-range surface-to-air missile (M-SAM) 'Cheongung 2,' so an export contract for the Cheongung missile is expected to be finalized as early as the end of this year. Upon contract completion, LIG Nex1 will secure significant orders in missile, fire control, and integrated system sectors.

Next year's performance is also expected to grow. Eugene Investment & Securities projected LIG Nex1's sales next year to increase by 8.4% from this year to 1.993 trillion KRW, and operating profit to rise by 11.6% to 117.6 billion KRW. Researcher Jeong forecasted, "Along with external growth based on a high order backlog, the export ratio, which was relatively low this year, will expand to over 10% next year."

Accordingly, Eugene Investment & Securities maintained a 'Buy' rating on LIG Nex1. The target price was raised from 54,000 KRW to 72,000 KRW. The closing price on the previous day was 62,900 KRW.

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