[Market Focus] Pungsan Surges Over 12% on Expectations of Structural Earnings Improvement

Pungsan surged more than 12% in early trading on July 15. The rally is attributed to strong buying driven by expectations of improved earnings in the securities market.

As of 10:07 a.m. on this day, Pungsan shares were trading at 148,600 won on the Korea Exchange, up 12.24% from the previous trading session. The stock opened at 132,500 won and has continued to climb.

Eugene Investment & Securities raised its target price for Pungsan from 86,000 won to 158,000 won, citing expectations of structural improvement in the company's performance. The firm forecast consolidated sales of 1.2875 trillion won and operating profit of 120.5 billion won for the second quarter of this year.

Yoo Yujin, a researcher at Eugene Investment & Securities, stated, "Although most of the first batch has already been delivered this year, continued demand for ammunition is expected to support solid operating profit." She added, "There is no longer any reason not to assign a defense valuation to Pungsan. From next year and into 2027, the company is expected to begin full-scale delivery of the second batch to Poland, and additional order pipelines for Korean defense companies are also anticipated."