DS Investment Securities announced on September 8 that it is maintaining its target price of 1.25 million won for LIG Defense and Aerospace (D&A), citing an increase in demand for ballistic missile defense systems. The firm also reiterated its 'buy' recommendation.
Kang Tae-ho, a researcher at DS Investment Securities, stated, "Despite the trend towards drones, ballistic missile defense systems remain crucial. Attackers are likely to mix multiple low-cost drones with ballistic missile strikes effectively." He added that the need to strengthen missile defense systems, such as the Cheongung, is increasing, not decreasing.
Additionally, the export outlook for LIG D&A's unmanned surface vessel, the Haegum, is positive. The company signed a contract worth 39.9 billion won for a 'reconnaissance unmanned surface vessel system development project' in December 2024, with plans for operational deployment in 2027.
Kang noted that LIG D&A has developed five models, including the technology demonstration Haegum-I, the naval reconnaissance Haegum-II, the army coastal defense Haegum-III, the vessel-mounted Haegum-V, and the Haegum-S. He mentioned that discussions are ongoing regarding the export of the Haegum to the UAE, with a strong model being the Haegum capable of carrying the guided rocket 'Bigung.'
Looking ahead, Kang projected that approximately 240 billion won in sales from the UAE's Cheongung-II is expected in the second half of this year. Consequently, LIG D&A's operating profit for the second half is anticipated to increase by 23.1% compared to the previous year. He also highlighted that the likelihood of securing Cheongung-II contracts in the Middle East, including Qatar and Kuwait, remains high.
Kang Tae-ho, a researcher at DS Investment Securities, stated, "Despite the trend towards drones, ballistic missile defense systems remain crucial. Attackers are likely to mix multiple low-cost drones with ballistic missile strikes effectively." He added that the need to strengthen missile defense systems, such as the Cheongung, is increasing, not decreasing.
Additionally, the export outlook for LIG D&A's unmanned surface vessel, the Haegum, is positive. The company signed a contract worth 39.9 billion won for a 'reconnaissance unmanned surface vessel system development project' in December 2024, with plans for operational deployment in 2027.
Kang noted that LIG D&A has developed five models, including the technology demonstration Haegum-I, the naval reconnaissance Haegum-II, the army coastal defense Haegum-III, the vessel-mounted Haegum-V, and the Haegum-S. He mentioned that discussions are ongoing regarding the export of the Haegum to the UAE, with a strong model being the Haegum capable of carrying the guided rocket 'Bigung.'
Looking ahead, Kang projected that approximately 240 billion won in sales from the UAE's Cheongung-II is expected in the second half of this year. Consequently, LIG D&A's operating profit for the second half is anticipated to increase by 23.1% compared to the previous year. He also highlighted that the likelihood of securing Cheongung-II contracts in the Middle East, including Qatar and Kuwait, remains high.
* This article has been translated by AI.
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