[Special Stock] Korea Aerospace Industries Expected to Strengthen Multiples on Earnings and Order Growth

The stock price of Korea Aerospace is on the rise. Expectations that earnings and order growth will increase the multiple seem to be influencing the stock price.

[Image source=Yonhap News]

As of 9:55 AM on the 28th, Korea Aerospace is trading at 57,400 KRW, up 4.94% from the previous day.

Lee Dongheon, a researcher at Shinhan Investment Corp., explained, "The main reason for the lower attention compared to other defense companies has been weak order momentum, but various domestic and international order negotiations are pending for the remainder of this year." He added, "The UAE Surion, Iraq Surion, domestic KF-21, and Central Asia FA-50 are expected within the year." He further stated, "The annual target of 5.9 trillion KRW for this year will be easily met," and "Expansion of pipelines in Asia, the Middle East, and the United States is also anticipated."

Additionally, he said, "Although overseas orders are slower compared to other companies, considering the expanding order pipeline, earnings and order growth will raise the multiple," and predicted, "From 2025, there will be improvements in performance from complete aircraft exports and airframe parts."