Korea Investment Securities analyzed on the 15th that LIG Nex1's first quarter this year would fall short of market expectations (consensus), but that long-term growth is anticipated. They added that long-term exports are possible in building air defense systems in the Middle East, starting with the export of Cheongung-II. The target stock price has been raised to 350,000 won, and the investment opinion remains 'buy.'

In the missile interception live-fire training, operational personnel are deploying to prepare for the launch of the Cheongung-Ⅱ surface-to-air missile. LIG Nex1 has secured a stable revenue source in the medium to long term through the export of Cheongung-Ⅱ to the Middle East./Joint Chiefs of Staff

Jang Nam-hyun, a researcher at Korea Investment Securities, noted, 'LIG Nex1's defense business proceeded as planned, but the consensus was set high without reflecting first-quarter seasonality.'

LIG Nex1's sales in the first quarter of this year are projected at 719.2 billion won, a 5.8% decrease from the same period last year, and operating profit is expected to fall 13.4% to 58 billion won. Compared to the consensus, sales and operating profit fall short by 11.6% and 11.4%, respectively.

However, operating profit is expected to grow in the medium to long term. This year's operating profit is anticipated to grow by 23% compared to last year, with increases of 30.2% and 39% expected in 2026 and 2027, respectively, as sales from the Cheongung-II exported to the United Arab Emirates (UAE) and Saudi Arabia are expected to be reflected in earnest.

As the most significant feature of air defense missile exports is continuity, the sustainability of the order backlog is also high. Countries in the Middle East that have already adopted Cheongung-II are showing interest in purchasing long-range surface-to-air missiles, L-SAM. Subsequent exports are expected to follow sequentially in the process of building air defense systems in the Middle East, including the LAMD, which is scheduled for completion.

Researcher Jang noted, 'Currently, the export pipeline is primarily centered on the Middle East, which lacks regional diversity,' adding, 'However, even considering the demand for air defense missiles in the Middle East, there is a long-term export pipeline that exists beyond 2030. Performance improvements are also expected to continue beyond 2027, highlighting the medium to long-term investment attractiveness.'