[Click e-Stock] "Rising Ammunition Demand in the Drone Era... Poongsan Target Price Up"

On September 23, Daishin Securities maintained its "Buy" investment rating on Poongsan and raised its target price by 14.3% to 160,000 won, citing the company’s emergence as a key beneficiary amid rising demand for drone-specific ammunition.

On this day, Lee Taehwan, a researcher at Daishin Securities, stated, "Ammunition remains essential even in the era of drones. Poongsan possesses both the production capacity for various calibers of ammunition and advanced smart munition technology."

Poongsan has technological capabilities in both drone-specific ammunition and forward area dispersal munitions designed to counter drones. The company has also secured the ability to manufacture its own drones, including the multipurpose combat drone MCD series and ammunition-dropping attack drones. In the ammunition segment, Poongsan is capable of producing a wide range of calibers, from small-caliber 5.56mm rounds to large-caliber 155mm shells. The company is also conducting research and development for the production of advanced smart munitions, such as airburst munitions, top-attack smart munitions, and dual-purpose ammunition.

In particular, Poongsan has developed drone-specific ammunition that can be mounted on drones, introducing products effective against heavily armored vehicles and concentrated troop formations. Researcher Lee explained, "Poongsan also possesses 30mm forward area dispersal munitions (SPREAD) technology, which is effective for countering small drones. As a hard-kill measure to block swarming drone incursions, demand for this technology is expected to increase."

The company is also developing its own drone mission equipment. The MCD series developed by Poongsan adopts a coaxial contra-rotating rotor design, resulting in a compact product.The MCD-7, weighing approximately 7kg, features a modular design that allows for different mission payloads, such as EFPs (Explosively Formed Penetrators) for anti-tank operations, fragmentation high-explosive bombs, and drop bomb modules. Poongsan also revealed an operational concept in which MCD-type relay drones can be deployed in swarms for mission command.

Researcher Lee added, "Poongsan is also producing small multicopter-type drones for ammunition-dropping attack missions, which are currently undergoing trial operations. These drones are equipped with three dual-purpose high-explosive bombs specifically designed for drones. After striking a target, the drone can conduct its own damage assessment and, if necessary, carry out a follow-up attack."