LIG D&A Expected to Sign Missile Contracts in November-December; Year-End Order Backlog at 28 Trillion Won

[Financial News] On the 9th, Yuanta Securities said it expects missile orders anticipated for November-December to turn into contracts for LIG Defense & Aerospace (LIG D&A). LIG D&A has projected a year-end order backlog of 28 trillion won, which Yuanta Securities considers highly visible. Yuanta maintained its “Buy” rating and 1.05 million won target price for LIG D&A.
Baek Jong-min, a researcher at Yuanta Securities, said, “Cumulative new orders through the third quarter totaled 1.14 trillion won. Given estimated revenue of around 5 trillion won this year and an order backlog of 26.2 trillion won at the end of last year, we expect orders of around 5 trillion to 6 trillion won. These are estimated to include 750 billion won for the domestic Jang Gonggong (December), Cheongung-II for Qatar and Kuwait, and other types of missiles bound for Asia (Malaysia, Indonesia, the Philippines, Thailand, etc.) and Africa (Morocco, etc.).”
Baek said, “The results of the bid-eligibility restriction decision are expected before the 20th. There are expectations that as a result of the Blue Wave, the war in the Middle East will intensify and Europe’s defense self-reliance will accelerate. External headwinds reflected in the share price are likely to ease soon; rather, this is a period when the short-term valuation burden has declined.”

[email protected] Kang Gu-gwi Reporter