[Alpha Biz= Paul Lee] LIG Nex1 has extended its rally to a fourth consecutive trading day.


According to the Korea Exchange on the 9th, as of 3:02 PM, LIG Nex1 was trading at KRW 401,000, up 7.65% (KRW 28,500) from the previous session. The stock has been on the rise since April 30.


The uptrend is attributed to strong buying momentum following better-than-expected first-quarter earnings.


LIG Nex1 reported consolidated revenue of KRW 907.6 billion in Q1, up 18.9% year-on-year. Operating profit came in at KRW 113.6 billion, exceeding market expectations.


Choi Jeong-hwan, an analyst at LS Securities, said, "The key takeaway from the earnings is not just the revenue surprise, but the exceptionally high margin despite domestic sales accounting for 82% of total revenue." He cited factors such as settlement gains of approximately KRW 8 billion, reversal of provisions related to development projects, improved margins in mass production, and the termination of the low-margin Indonesian radio project.



Following the earnings announcement, all 14 securities firms that released reports raised their target prices for LIG Nex1.



Daol Investment & Securities set the highest target at KRW 490,000. Analyst Choi Gwang-sik explained, "The strong performance is due to double-digit margins in the domestic defense business. As exports are expected to surge from the second half of next year, LIG Nex1 remains a solid long-term investment within the defense sector."



Other revised targets include:

Hanwha Investment & Securities: KRW 460,000

Kiwoom, Kyobo, NH Investment & Securities, Mirae Asset: KRW 450,000

iM Securities: KRW 444,000

Hyundai Motor Securities: KRW 442,000

Shinhan, Samsung, LS Securities: KRW 430,000

Korea Investment, DS Investment: KRW 420,000

KB Securities: KRW 410,000

 

 

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