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Photo = LIG Nex1 |
[Alpha Biz= Paul Lee] On Tuesday, Daishin Securities raised its target price for LIG Nex1 to KRW 330,000, an 8.2% increase from the previous target of KRW 305,000, while maintaining its "Buy" rating.
Daishin Securities stated, “LIG Nex1’s consolidated operating profit for the fourth quarter of 2024 was KRW 62.7 billion, up 69.9% year-on-year, exceeding market consensus.”
The securities firm highlighted that LIG Nex1's revenue surged by 58% quarter-on-quarter, driven by growth across all business segments, including Precision Guided Munitions (PGM), Command, Control, Communications, and Intelligence (C4I), Aerospace and Electronic Warfare (AEW), and other sectors. However, it noted that the increased proportion of lower-margin R&D projects led to somewhat slower profit growth.
LIG Nex1’s consolidated revenue for the fourth quarter of 2024 was KRW 1.169 trillion, reflecting a 71.8% increase year-on-year, with an operating profit margin of 5.4%. The company’s export share stands at approximately 20% and is gradually increasing, though profitability has been dampened by the low-margin Indonesian radio supply project.
Daishin Securities further projected that from 2025, revenue mix improvements would be driven by the mass production of Cheongung-II (M-SAM) for the United Arab Emirates (UAE). It expects export volume to show a significant increase from 2026, marking the initial phase of sustained profit growth.
LIG Nex1’s order backlog currently stands at KRW 20.1 trillion, equivalent to over six years’ worth of revenue based on 2024 sales.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
