[Market Focus] LIG Nex1, 'Cheongung-II Manufacturer,' Surges Double Digits

LIG Nex1's stock price continued its upward trend on the domestic stock market in the morning of March 4, following reports that the 'Cheongung-II' successfully intercepted Iranian missiles.

As of 10:10 a.m. on this day, LIG Nex1 was trading at 735,000 won per share, up 11.20% from the previous session. Immediately after the market opened, the stock even surpassed the 840,000 won range, setting a new 52-week high.

This surge is attributed to a wave of buying in LIG Nex1, the manufacturer of the domestically produced Cheongung-II air defense system deployed in the United Arab Emirates, following reports that the system intercepted missiles recently launched by Iran. This is in sharp contrast to the sharp declines of leading defense stocks, which surged the previous day due to U.S. and Israeli airstrikes on Iran but are now falling due to profit-taking and other factors.

Jang Namhyun, a researcher at Korea Investment & Securities, stated, "The importance of air defense missiles has been highlighted during the course of the war," noting "the possibility of accelerating the delivery of already contracted Cheongung-II units and additional orders for related components depending on how the war unfolds." Accordingly, there are expectations that exports to the Middle East by core companies in the value chain, such as LIG Nex1, will increase.

Chae Woonsam, a researcher at Hana Securities, also said in a report released the previous day, "The cost-effectiveness and delivery timeline of the Cheongung-II could position it as a multi-layered air defense system that complements the expensive and supply-constrained Patriot," and raised the target price for LIG Nex1 from the previous 562,000 won to 710,000 won.

This content was produced with the assistance of AI translation services.