[Featured Stock] Defense Export Expansion Expected... Perstek Soars

As of 9:30 AM on the 6th, the stock price of defense company Perstek surged 19.01% from the previous closing price to 4,320 KRW. This appears to be due to expectations of increased exports of domestically produced weapons.

Perstek is a company that develops electronic automatic control devices for weapons and ground control systems for unmanned aerial vehicles. It has participated in major domestic weapon system projects such as the T-50, Surion, short-range surface-to-surface missiles, surface-to-air guided weapons, K-9 self-propelled howitzers, and K-10 ammunition carriers, developing and producing launch control equipment, actuators, cooling devices, and automatic fire extinguishing systems.

With the expansion of domestic weapon exports, Perstek has been announcing consecutive orders. In July last year, it signed an initial mass production contract worth 31.3 billion KRW for medium-altitude reconnaissance unmanned aerial vehicles with Korean Air, and in December last year, it signed a contract to supply actuators for medium-range surface-to-air missiles (Cheongung-2) worth 45.7 billion KRW with LIG Nex1. The actuator that controls the flight attitude of guided missiles has attracted attention as it is used not only in Cheongung-2 but also in Hyunmoo, Hyeongung, and Biryong missiles.

On the 3rd of last month, Perstek announced its preliminary financial results for last year based on individual financial statements, reporting sales of 207.3 billion KRW, operating profit of 4.6 billion KRW, and net profit of 5.4 billion KRW. These figures represent increases of 19.7%, 83.3%, and 17.9% respectively compared to the previous year.

As a defense company that does not disclose detailed information, Perstek stated regarding the improvement in performance that "operating profit increased due to business diversification and cost reduction."