[Click eStock] "LIG Nex1 Enters Early Stage of Profit Growth"

Export Ratio Increases with Focus on High-Profit Businesses
An Indispensable Presence in the Era of Advanced Weapons

Last year, LIG Nex1, which already posted earnings exceeding market consensus, is entering the early stage of profit growth, according to forecasts. As the export ratio increases further and the sales structure shifts toward high-profit businesses, steady order intake and profit growth are expected.

On the 18th, Daishin Securities maintained its 'Buy' rating on LIG Nex1 and raised the target price by 8.2% to 330,000 KRW. This price applies a price-to-earnings ratio (PER) of 20 times to the projected earnings per share (EPS) of 16,524 KRW for 2024 and 2026. The closing price on the previous day was 280,500 KRW.

In the fourth quarter of last year, LIG Nex1 recorded consolidated sales of 1.1686 trillion KRW and operating profit of 62.7 billion KRW, representing sharp increases of 71.8% and 69.9%, respectively, compared to the same period the previous year. These results also exceeded market expectations. However, the operating profit margin remained at 5.4%, the same as the previous year’s quarter, and was the lowest among the four quarters of last year. This was due to an increase in the research and development ratio from 26% in the previous quarter to 32%.

The growth potential going forward is considered sufficient. It is still at the very beginning stage of profit growth. Researcher Tae-Hwan Lee of Daishin Securities explained, "This year, sales product improvement is expected with the mass production of Cheongung-II for the United Arab Emirates (UAE), and the company also anticipates a significant increase in the export ratio starting in 2026. Since the order backlog already exceeds 20 trillion KRW, equivalent to more than six years of last year’s sales, it is an indispensable stock in future battlefields centered on advanced weapons."

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