[Click e-Stock] "Vitzrocell Expected to Grow in Defense Sector"

On May 23, KB Securities predicted that the defense sector would drive growth for Vitzrocell.

In the first quarter of this year, Vitzrocell recorded sales of 53.9 billion KRW and operating profit of 15.1 billion KRW. These figures represent increases of 43% and 49%, respectively, compared to the same period last year.

Han Jeyoon, a researcher at KB Securities, explained, "Due to seasonality, the first quarter is typically considered an off-season," and added, "However, in the first quarter of this year, the company achieved a 'surprise performance' by recording growth compared to the previous fourth quarter, which is usually a peak season."

He continued, "Considering the first quarter results, we estimate that this year, the company will achieve sales of 257.5 billion KRW and operating profit of 72.4 billion KRW," and added, "These figures represent increases of 22% and 39%, respectively, compared to last year."

He emphasized, "Sales in the defense sector are expected to reach 57.4 billion KRW, which is an increase of about 59% year-on-year," and added, "We expect an increase in export volume not only domestically but also overseas."

Han further analyzed, "Growth is possible due to the expansion of geopolitical risks in India, which is a key export region, as well as the acquisition of new customers in other regions," and added, "Recently, demand for new weapon systems such as missile domes is rapidly increasing."