[Click e-Stock] "Korea Aerospace Industries Expected to See Significant Growth Next Year"

On May 7, LS Securities analyzed that Korea Aerospace Industries' first-quarter results for this year fell short of estimates. However, the firm expects the company to begin full-scale growth starting next year and raised its target price by 10.5% to 105,000 won.

In the first quarter of this year, Korea Aerospace Industries posted consolidated sales of 699.3 billion won and operating profit of 46.8 billion won. These figures represent decreases of 5.5% and 2.5%, respectively, compared to the previous year.

Choi Junghwan, a researcher at LS Securities, stated, "Revenue from the development of the FA-50 for Poland and Malaysia, which drives the company's performance, will be fully reflected starting in the second half of this year," and added, "Full-scale production is expected to begin in the second half of next year." He further explained, "New orders for Asia and the Middle East, including the FA-50 for the Philippines, will be concentrated in the second half of this year and the first half of next year," and predicted, "Development revenue recognized from these orders will be combined with mass production revenue for Poland and Malaysia."