Poongsan is setting new all-time highs daily, driven by the strong performance of its ammunition business.
Poongsan's stock traded at 96,200 won on the KOSPI market at 9:17 a.m. on the 13th. The stock price rose by 9.82% (8,600 won) compared to the previous day. It jumped to as high as 101,700 won shortly after the market opened, achieving its peak price.
Poongsan's business is divided into two institutional sectors: the copper processing sector, which produces copper products, and the defense sector, which manufactures ammunition. In particular, the sharp increase in ammunition demand due to geopolitical conflicts seems to have stimulated investor sentiment regarding the growth trend in the defense sector.
While Poongsan's stock price has surged steeply in a short period, there are forecasts indicating that there is still room for further increases. Lee Jae-gwang, a researcher at NH Investment & Securities, raised his target price for Poongsan to 115,000 won.
The researcher noted, "The recent surge in stock prices represents a reassessment of the previously undervalued value of the defense sector," adding, "Poongsan recorded its highest performance last year as a result of the increased demand for ammunition, and it is expected to continue growing this year as well."