LIG D&A's Saudi Cheongung-II revenue recognition to gather pace from Q4

[Financial News] Korea Investment & Securities said on the 19th that revenue recognition related to LIG D&A's Saudi Cheongung-II project would gather pace from the fourth quarter. The assessment comes as revenue from the UAE Cheongung-II project expands starting this year. Korea Investment & Securities maintained its “Buy” rating on LIG D&A but lowered its target price from 1.2 million won to 1 million won.
Korea Investment & Securities analyst Jang Nam-hyeon explained, “LIG D&A's overseas revenue share will rise to 25.4% in 2026 and 27.2% in 2027, then reach 30.2% in 2028 as revenue recognition for the Iraq Cheongung-II project expands. The operating margin on export projects is estimated at 20% or more.”
Jang said, “Order opportunities and earnings growth potential are expanding. Excess demand from countries in the Middle East, Europe and Asia that need to expand their air defense networks in the short term will lead to increased Cheongung-II exports. Export contracts for Cheongung-II with Middle Eastern countries such as Qatar, and a large-scale integrated air defense package deal with the UAE, will come into view this year. We are entering a phase in which the share of export revenue from the Middle East is set to expand in earnest.”  


[email protected] Kang Gu-gwi Reporter