[Special Stock] i3System Rides Defense Sector Rally to Hit New High

i3System is showing strong performance in the early trading session. It is interpreted that investor sentiment is being driven as its main product, military-grade infrared imaging sensors, is expected to benefit from the recent rally in defense stocks.

As of 9:38 AM on the 12th, i3System is trading at 60,600 KRW, up 24.31% (11,850 KRW) from the previous day. During the session, the price surged to 63,300 KRW, setting a new 52-week high.

i3System develops imaging sensors and related products that convert various electromagnetic wave energy information?from X-ray bands, which are invisible to the human eye, to infrared bands?into visible information. In the defense sector, the company supplies various guided weapons, upgraded gunner sights for the K1 tank, and infrared imaging sensors for the K2 tank exported to Poland.

Lee Sangheon, a researcher at iM Securities, explained, "As manpower resources decrease, enhancing individual combat power becomes more important. Therefore, infrared imaging sensors are expected to be sequentially installed not only on machine guns but also on various firearms such as rifles, benefiting the company. Since companies possessing infrared imaging sensor technology are limited, overseas sales channels that can monopolize markets in Southeast Asia, the Middle East, and Europe are increasing, which is expected to drive profit growth."

The company is also expected to stand out in the space satellite sector by producing space optical cameras. As of the end of September last year, the order backlog was 72.8 billion KRW, with the space satellite sector accounting for 7.4 billion KRW, or 10.2% of the total. So far, it has secured orders for the focal plane unit (FPU) of the multipurpose practical satellite 7A’s electro-optical payload (a device that converts light reflected from mirrors into electronic signals for processing) and the development of space-certified mid-wave infrared (MWIR) TDI technology for next-generation military reconnaissance satellites.