[Edaily Reporter Kim Hyung-il ] SKSecurities has maintained its “Buy (BUY)” investment rating for LIG Nex1 Co., Ltd.(079550)and raised its target price from 1.15 million won to 1.3 million won.

On the 10th, Han Seung-han, an analyst at SKSecurities, stated, “Second-quarter consolidated revenue was 1.1101 trillion won, and operating profit was 105.7 billion won, in line with market expectations (110.5 billion won),” adding, “The company achieved year-over-year profit growth driven by an expanded export share and overall business expansion, without any significant one-time factors.”

He continued, “The domestic operating profit margin (OPM) remained similar to the previous quarter, with the mass production division at 9–10% and the R&D division at the break-even point (BEP),” and explained, “Considering the first-half results, we have raised our full-year OPM forecast from 7% to 8%.”

SKSecurities projected that while sales of the Cheongung system in the United Arab Emirates (UAE) totaled approximately 99 billion won in the second quarter, they would recover to a level of about 120 billion won in the second half—similar to the fourth quarter of last year—resulting in annual Cheongung sales exceeding 500 billion won this year. Additionally, the firm predicted that while a loss is inevitable this year for its U.S. subsidiary, Ghost Robotics—which posted an operating loss of 12 billion won in the second quarter—the deficit will narrow as the company is expected to reach the break-even point next year.

One analyst stated, “Amid a global shortage of interceptor missiles, the capacity expansion at the Gumi and Gimcheon plants is not merely a preemptive investment but signifies progress in export contract negotiations and the securing of order visibility.” The analyst added, “Demand for air defense weapons in the Middle East is expanding due to the war in Iran, growing interest in the Cheon-gung 2 from Southeast Asian countries such as Malaysia, Indonesia, and the Philippines, and the potential for future exports to Europe based on the memorandum of understanding (MOU) for a joint venture (JV) with Germany’s Rheinmetall are all expanding the company’s prospects.”

He continued, “Explosive growth in volume (Q) and profitability (P) is expected to begin in earnest starting in 2028–2029,” adding, “We believe valuation concerns can be sufficiently alleviated at the current stock price level, so we are maintaining our ‘Top Pick’ rating for the defense sector.”