[Click eStock] "LIG Nex1, Sustained Earnings Growth for at Least 5 Years"

[Asia Economy Reporter Hwang Yoon-joo] Daishin Securities maintained a 'Buy' rating and a target price of 86,000 KRW for LIG Nex1 on the 23rd, forecasting that its performance growth will continue for at least five years.

Researcher Lee Dong-heon of Daishin Securities stated, "Export growth began in the first quarter, and annual growth is expected to continue."

He analyzed, "Among major domestic defense companies, it is the only one engaged purely in defense business. Through the Ukraine crisis, weapon systems such as Hyungung and Cheongung have gained prominence."

[Image source=Yonhap News]

Lee said, "The whole world has recognized the importance of preparedness," adding, "With strengthened unity among Europe and pro-US countries and the possibility of increased arms purchases, demand for alternatives to Russian weapon systems is expected to rise."

He explained, "The competitiveness of Hyungung and Cheongung lies in the application of the latest technology and materials," and "Hyungung is lighter than Javelin and has similar performance, and it holds competitiveness through localization."

Regarding LIG Nex1's mid- to long-term performance, Lee evaluated, "The current 4% operating profit margin can increase due to growth in backlog and sales." He noted that as the dollar rises, the burden of raw materials is offset, so the impact of rising raw material costs is minimal.