[Click eStock] "LIG Nex1, Performance Growth Until 2029... A Leader in Future Unmanned Weapon Systems"

Daol Investment & Securities analyzed on the 3rd that LIG Nex1 is expected to have the longest performance growth until 2029. The investment opinion 'Buy' and the target price of 310,000 KRW were maintained.

Choi Kang-sik, a researcher at Daol Investment & Securities, said, "The expected sales and operating profit for the fourth quarter of last year were 858.3 billion KRW and 45.7 billion KRW," adding, "We lowered the previous estimates reflecting the increase in development projects and conservative guidance on loss provisions."

The expected sales and operating profit for this year were presented as 3.26 trillion KRW and 280 billion KRW. He said, "L-SAM, which received combat suitability certification in November last year and entered mass production, has already attracted purchase intentions from Middle Eastern countries, and orders are expected this year," adding, "The Korean military is likely to request slots after its deployment in 2027." He also added, "The top-line growth of LIG Nex1 from 2028 to 2029 is expected to extend into the early 2040s."

He continued, "Expectations for orders of Bigung, which passed the U.S. FCT at RIMPAC in July 2024, are also ongoing," explaining, "Although there are remaining steps such as the U.S. Navy's requirement raising and budget securing, we expect it in 2025."

He said, "It is difficult to estimate the initial introduction scale, but purchases will continue, and expansion to the Five Eyes, which is strengthening its naval power, is also expected," adding, "Whether it is export or not, the curiosity lies in whether it will be direct export or delivery through local companies."

He emphasized, "LIG Nex1 was selected as the system development company for reconnaissance unmanned surface vessels on December 19 last year," adding, "It is a strong player in future unmanned weapon systems, preparing the Stow mode launcher on the Haegum as the launch system for Bigung."