[Market Focus] Korea Aerospace Industries Hits 52-Week High on Performance and Order Momentum Outlook

Over 10% Surge in Early Trading

Korea Aerospace Industries saw its stock surge by more than 10% in early trading on January 19. Investor sentiment appears to have rebounded on the back of positive forecasts from securities firms predicting strong performance this year.

As of 9:41 a.m. on this day, Korea Aerospace Industries shares were trading at 172,000 won on the Korea Exchange, up 10.33% from the previous trading day. The stock opened at 160,700 won and at one point during the session soared to 174,500 won, setting a new 52-week high.

Hana Securities raised its target price for Korea Aerospace Industries to 210,000 won in a report released the same day, stating that the company has entered a period where both performance and momentum are converging. Analyst Chae Woonsaem commented, "In terms of performance, this year's operating profit growth rate (89.0% year-on-year) not only surpasses the domestic peer group average (35.1%) but also outpaces major global defense companies (24.0%)." He added, "Given concerns about slowing growth in the global defense industry due to high base effects, Korea Aerospace Industries could be a differentiated choice."

He also emphasized, "The order pipeline is estimated at over 35 trillion won, which is approximately 2.3 times the company's market capitalization," adding, "From a momentum perspective, the company is also outperforming domestic peers."