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[Alpha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities raised its target price of Poongsan Corporation by about 4% from the previous 51,000 won to 53,000 won based on continued growth in the defense sector.
"The Russia-Ukraine war, the prolonged Israeli-Palestinian war and the re-emergence of the U.S.-China conflict due to the election of a pro-U.S. Taiwanese president could enable stable growth in the Poongsan Corporation's defense sector," Shinhan Investment & Securities said in a report on the 24th. The investment opinion remained 'buy'.
Shinhan Investment & Securities predicted that Poongsan Corporation recorded 1.2 trillion won in sales and 67.3 billion won in operating profit in the fourth quarter of last year, which will meet market earnings forecasts.
Sales in the defense sector were expected to reach 376 billion won, the highest quarterly performance record.
"Poongsan Corporation's defense sales are expected to reach KRW 1.1 trillion last year, up 11% year-on-year. Overseas export regions of the defense industry have been diversifying, with the company recently winning a contract to supply small caliber ammunition to Southeast Asia," said Shinhan Investment & Securities Co. This year's sales forecast was 4.2 trillion won, up 1.9% from last year, and operating profit forecast was 271 billion won, up 13.9%.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
