On the 2nd, securities firms are consecutively raising their target stock prices for Poongsan. This comes as Poongsan has posted results that exceed market expectations for the first quarter of this year (January to March), and the assessment that there will be continued high growth in the defense institutional sector played a role. The closing price of Poongsan on the previous trading day was 59,300 won.
Park Kwang-rae, a researcher at Shinhan Investment Corp, noted, “Poongsan is achieving structural growth driven by defense and supported by non-ferrous metals (copper and copper alloys).” He added that with performance growth centered on defense expected next year and the establishment of overseas plants confirmed, a full-scale reevaluation of the stock price is likely to begin. He revised the target stock price from 74,000 won to 85,000 won.
Kim Yoon-sang, a researcher at iM Securities, said, “There is a possibility of a slowdown in exports of sports ammunition to the U.S. this year,” but he added, “However, as defense exports to regions outside the U.S. increase, this will offset the slowdown.”
He continued, “Even assuming a slowdown in momentum in the defense institutional sector, Poongsan's stock price remains attractive,” explaining, “The conservatively assessed value of the defense institutional sector is 71,000 won per share, which exceeds Poongsan's current stock price.” He maintained Poongsan as his top pick in the sector.
On this day, iM Securities raised its target stock price from the previous 72,000 won to 77,000 won, while Samsung Securities increased its target from 80,000 won to 85,000 won.
Previously, Poongsan recorded consolidated sales of 1.1559 trillion won and an operating profit of 69.7 billion won for the first quarter (January to March). This represents a year-on-year increase of 20% and 28.6%, respectively, exceeding market expectations of 1.1 trillion won in sales and 55.9 billion won in operating profit for the first quarter.