[Click eStock] "Korea Aerospace Industries, Clear Mid-to-Long-Term Growth Potential... Target Price Maintained at 72,000 KRW"

Shinhan Investment Corp. maintained a Buy rating and a target price of 72,000 KRW for Korea Aerospace Industries (KAI) on the 5th, stating that "although there are short-term fluctuations, long-term growth is clear."

Lee Dong-heon, a researcher at Shinhan Investment Corp., said, "Through a factory tour, we confirmed the long-term growth strategy and stable production across all business divisions," adding, "The timing of overseas orders is a variable, but orders are proceeding normally."

KAI held an analyst factory tour on the 3rd, hosted by the CEO. They explained six key growth industries: 6th generation fighter jets, transport aircraft, next-generation utility helicopters, dual-use AAVs (amphibious assault vehicles), satellite development services and space exploration solutions, and future advanced software. The company aims to achieve 40 trillion KRW in sales by 2050 and become the world's 7th largest aircraft manufacturer.

The KF-21 is scheduled for a mass production contract in June, and a partial reduction in development costs is also possible. All six prototypes are currently operational, and even if Indonesia's development cost share decreases, KAI can recover some expenses after partial spending. The export potential is assessed as high.

Negotiations for the Surion helicopter with the UAE are in the final stages. Progress with Iraq is also smooth. Marketing efforts are ongoing with two countries each year. Sales expansion is expected in the Middle East and Asia regions. KAI started mass production of the first unit by the end of the year. The provision issue has been resolved.

For airframe parts, the Airbus A350 wing rib automation plant is expected to increase productivity, with an automation rate exceeding 90% and monthly production rising from 7 to 12 units. Compared to advanced companies, there are requests for innovative production lines and increased volume, and expansion of automation to other factories is anticipated. Airframe parts are based on past strong performance. Riding the recovery trend in the aerospace industry, performance is expected to improve.

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