[Click eStock] "Korea Aerospace Industries, Period of Steep Sales Growth"

Hana Securities evaluated on the 30th that Korea Aerospace Industries' operating profit for the third quarter of this year exceeded market expectations. The target stock price for Korea Aerospace Industries was raised to 77,000 KRW.

Korea Aerospace Industries recorded sales of 907.2 billion KRW and an operating profit of 76.3 billion KRW in the third quarter. Compared to the same period last year, sales decreased by 9.9%, but operating profit increased by 16.7%.

Wiheung Jae, a researcher at Hana Securities, explained, "The operating profit surpassed the market expectation of 73.3 billion KRW," adding, "Improvement in the estimated cost of the Iraq contractor's Contract Logistics Support (CLS) project and reduction in selling and administrative expenses through enhanced management efficiency led to profitability improvement."

He continued, "The golden age of Korea Aerospace Industries' stock price was from 2013 to 2015," analyzing, "In 2013, the first mass-produced FA-50 was delivered, and in 2014, an export contract for the FA-50 was signed with the Philippines." Furthermore, he emphasized, "In 2015, being selected as the preferred bidder for the KF-21 further boosted the stock price momentum," adding, "In terms of performance, annual sales sharply increased to 2 trillion KRW, 2.3 trillion KRW, and 3 trillion KRW."

The researcher predicted, "This year, the development of the KF-21 is being finalized," and "The domestic mass production contract has been signed, and exports are also expected to be possible." He added, "The annual sales forecasts from 2024 to 2026 are 3.7 trillion KRW, 4.2 trillion KRW, and 5.9 trillion KRW, respectively."