Hyundai Motor Securities announced on June 19 that it has initiated coverage on Korea Aerospace Industries, reflecting expectations for improved performance due to increased deliveries of completed aircraft and the anticipated export visibility of the KF-21. The firm has set a buy rating and a target price of 202,000 won.
Baek Joo-ho, a researcher at Hyundai Motor Securities, stated, "In 2026, over 60 completed aircraft deliveries are scheduled, including the KF-21 and LAH, which is expected to accelerate the pace of performance improvement. This is a period where performance, orders, and the export momentum of the KF-21 are all working simultaneously."
He added, "Revenue for 2026 is projected to reach 5.76 trillion won, a 55.9% increase from the previous year, while operating profit is expected to rise by 76.1% to 474 billion won. In the domestic market, the delivery of eight KF-21s, 30 LAHs, and an expansion of FA-50 deliveries will drive performance growth."
Furthermore, he explained, "In the export sector, revenue from the delivery of the FA-50PL to Poland and the FA-50 to Malaysia is expected to be reflected, with annual deliveries increasing significantly from 15 units in 2025 to 60 units in 2026. The mass production of the KF-21 is concentrated in the fourth quarter, leading to anticipated performance trends of increasing sales in the latter half of the year."
Baek noted, "In terms of orders, more than half of the 5.7 trillion won order guidance for 2026 is expected to come from the KF-21 export contract with Indonesia, which is currently in the final negotiation stage. Discussions for exports with countries such as the UAE, Philippines, Malaysia, Egypt, and Peru are ongoing, suggesting that future expansions in KF-21 exports and Hanwha Aerospace's acquisition of shares could serve as additional catalysts for stock price increases."
* This article has been translated by AI.
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