[Click eStock] "LIG Nex1, Potential for Earnings Upgrade... Target Price Up"

On the 7th, iM Securities evaluated that there is a possibility of upward revision in future earnings estimates for LIG Nex1. The investment opinion 'Buy' was maintained, and the target price was raised from the previous 196,000 KRW to 287,000 KRW.

Recently, tensions in the Middle East have escalated due to the conflict between Israel and Iran. In this context, Byun Yong-jin, a researcher at iM Securities, stated, "Iraq's order of the Cheongung-II, a medium-range surface-to-air defense weapon, following the United Arab Emirates (UAE) and Saudi Arabia, is not unrelated to the current international situation." He added, "Israel and Iran are exchanging missiles daily with Iraq in between, so Iraq's procurement of air defense weapons is perhaps natural." He further noted, "Kuwait and Qatar are also reportedly interested in the Cheongung-II," emphasizing that "the Cheongung-II orders are just beginning."

Meanwhile, LIG Nex1 acquired shares of the U.S. robotics company Ghost Robotics in July. Ghost Robotics' quadruped robot dog was first introduced in 2020 for base security by the U.S. Air Force, and its usage by the U.S. military is gradually expanding. Researcher Byun predicted, "As witnessed in the Russia-Ukraine war and Middle East conflicts, the unmanned nature of battlefields is rapidly advancing, and demand for military robot dogs is expected to surge." He projected, "Accordingly, Ghost Robotics' sales could expand to about 100 million USD next year and exceed 300 million USD by 2027."

LIG Nex1 announced a total investment of 5 trillion KRW by 2030 to handle the increasing volume and further expand its scope. Researcher Byun analyzed, "Although specific details have not yet been disclosed, mergers and acquisitions (M&A) of promising companies in air defense and unmanned solutions are expected according to the investment plan." He added, "Based on the expansion of production capacity, the progress of future export projects opens the possibility of upward revision in earnings estimates."

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