[Click eStock] LIG Nex1, 3 Consecutive Years of Order Growth... Satellite Business Also 'Good Good'

[Asia Economy Reporter Ji Yeon-jin] Shinhan Financial Investment announced on the 21st that it raised the target price of LIG Nex1, a defense industry specialist, to 54,000 KRW and maintained a buy rating, citing the company's solid performance and the high growth potential of its satellite business.

The company's Q4 performance last year showed sales of 494.5 billion KRW, up 14.1% year-on-year, and an operating profit of 17 billion KRW, marking a return to profitability. This significantly exceeds the market consensus operating profit estimate of 9 billion KRW. Orders have been increasing from 2018 through last year, and concerns over one-time gains or losses related to the KRW-USD exchange rate, which had caused volatility in operating profit, have also been resolved.

Hwang Eo-yeon, Senior Researcher at Shinhan Financial Investment, stated, "The company is also engaged in the recently highlighted satellite business," adding, "It is mass-producing Synthetic Aperture Radar (SAR) mounted on satellites and plans to jointly develop with Korea Aerospace and KAIST to enter the small satellite communication market. This year, initial mass production orders for satellite ground communication terminals (estimated total project cost of 500 billion KRW, considering vehicle-mounted, portable, and ship-mounted types) are also expected."