[Featured Stock] Korea Aerospace Industries Forecasts Strong Q4 Performance... Orders Exceed 5 Trillion Won This Year

Korea Aerospace Industries is showing strong performance. This is interpreted as reflecting the positive outlook for the fourth quarter and the full year.

As of 11:44 AM on the 3rd, Korea Aerospace Industries is trading at 54,400 KRW, up 6.04% (3,100 KRW) from the previous close.

Lee Dongheon, a researcher at Shinhan Investment Corp., said, "Korea Aerospace Industries' fourth-quarter sales last year are expected to reach 1.3482 trillion KRW, a 55% increase compared to the previous year, and operating profit is expected to rise 265% to 136.9 billion KRW, surpassing market expectations," adding, "This is a reversal of the performance that had consistently fallen short of consensus (market average forecast) last year." He predicted that a full-scale improvement in performance would be possible starting this year.

Korea Aerospace Industries is expected to approach its order target of 4.5 trillion KRW this year, with projects such as the second batch production of small armed helicopters at the end of the year (1.4 trillion KRW), development of parts for mobility helicopters (188.9 billion KRW), and performance improvement projects for airborne communication radios (349.5 billion KRW). Including the domestic KF-21 mass production contract (worth 2 trillion KRW), it is possible to achieve total annual orders exceeding 5 trillion KRW. Notably, while there were no overseas orders last year except for Malaysia, it is expected that orders from at least three countries will be secured this year.

The researcher said, "With the U.S. trainer aircraft project resuming and the KF-21 mass production project gaining momentum, factors that had previously suppressed the stock price are being resolved," adding, "The diversification of export countries and the relatively limited stock price increase so far also make it attractive."