[Click eStock] "'Export-Driven Order Backlog' LIG Nex1, Target Price Up"

Korea Investment & Securities on the 2nd raised the target price for LIG Nex1 by 20.9% to 260,000 KRW, stating that "the visibility of growth in earnings and order backlog is high." The investment rating was maintained as a buy.

On the same day, Namhyun Jang, a researcher at Korea Investment & Securities, said, "Earnings steadily improve based on an order backlog worth 19 trillion KRW. The highly visible export pipeline (projects under research and development) will drive mid- to long-term growth in the order backlog."

Above all, major export discussions are ongoing. Researcher Jang stated, "Discussions are underway to export the medium-range surface-to-air missile 'Cheongung-II' to Romania and Iraq," adding, "In the mid- to long-term, exports of air defense weapon systems to Saudi Arabia will continue. Considering Saudi Arabia's land area and the scale of its defense facilities, there is a high possibility of additional exports of Cheongung-II."

He also explained, "Since continuous interest is being shown in the long-range surface-to-air guided missile 'L-SAM,' which was completed in May, it is a product with high export potential in the future. Additionally, testing of the coastal defense guided rocket 'Bigung' for export to the United States will be completed within this year, and negotiations for exports will begin next year."

Researcher Jang added, "While the large-scale export pipeline will lead to sharp growth in the order backlog as contracts are signed, what is needed is patience. Physical time is required for performance tests and negotiation processes," and further noted, "This inevitably occurring time will be filled by relatively smaller weapon systems such as naval weapons."