[Market Focus] Pungsan Hits Record High on Hopes for High-Margin Shell Orders Amid Middle East Tensions

Pungsan is showing strong performance in early trading.

As of 9:10 a.m. on June 23, Pungsan was trading at 1,412,000 won, up 11.62% (147,000 won) from the previous trading day. During the session, the stock soared to as high as 1,495,000 won, marking a new 52-week high. Pungsan Holdings also jumped more than 8%, setting a new 1-year high.

Following the U.S. strike on Iranian nuclear facilities, stocks in the oil, defense, and shipping sectors are drawing attention. At the same time, securities analysts have expressed optimism about Pungsan's defense business performance, which has boosted investor sentiment.

Baek Jaeseung, a researcher at Samsung Securities, stated, "With Hyundai Rotem's second weapons export contract to Poland approaching, the likelihood of Pungsan securing a second order for shells destined for Hyundai Rotem has also increased." He added, "Although this additional shell order may be delivered after 2028, the fact that Pungsan can achieve stable long-term performance in its defense export business through additional orders for high-margin shells is definitely positive." He raised his target price from 850,000 won to 1,500,000 won.