DAISHIN SECURITIES evaluated on the 1st that Poongsan also succeeded in the reevaluation of its defense business value since the outbreak of the Israel-Iran war. It maintained its investment opinion of 'Buy' and set the target price at 140,000 won, an increase of 59.1%. Poongsan's closing price on the previous trading day was 128,700 won.
DAISHIN SECURITIES projected Poongsan's consolidated sales for the second quarter of this year to be 1.27 trillion won and operating profit to be 111.9 billion won. Sales are expected to increase by 3.3% compared to the same period last year, while operating profit is anticipated to decrease by 4.3% compared to the same period last year. This slightly exceeds market expectations.
Lee Tae-hwan, a researcher at DAISHIN SECURITIES, analyzed, "Since the outbreak of the Israel-Iran war, global demand for expendable ammunition and missile products is expected to increase, and Poongsan's defense business value has also succeeded in the reevaluation."
He added, "As Iran and Israel agree to a ceasefire relatively early, there have not been any significant changes to Poongsan's domestic-focused annual supply plan," and noted, "As military expenditures are ramping up in various countries, Poongsan is expected to expand its export share based on its production capacity for 155mm large-caliber shells and extended-range shells."
It is also expected that the strengthening copper prices will have a positive effect.
The researcher analyzed, "LME copper prices have surged above $10,000 for the first time since the second quarter of last year," and noted, "In a tight supply situation, structural demand is increasing and moves to secure ahead of possible tariffs are emerging."