LS Securities adjusted its target price for KAI to 95,000 won, a 37.7% increase from its previous estimate. This adjustment comes as the company's sales exceeded market expectations in the first quarter and amid growing interest in Korean weapons systems.
According to LS Securities, KAI's sales in the first quarter amounted to 990 billion won, surpassing market expectations. This represents a 22.9% increase compared to the same period last year. Operating profit also matched market forecasts at 64 billion won.
Choi Jeong-hwan, a researcher at LS Securities, noted that "sales from the mass production of the Light Armed Helicopter (LAH) and sales from the development of the FA-50 for Poland and Malaysia contributed to the growth in earnings," adding that "sales growth is expected to accelerate due to the full-fledged recognition of mass production sales."
KAI is recognized as the only comprehensive corporation for aviation weapons systems in South Korea, with a major product lineup consisting of cost-effective weapons systems. Researcher Choi stated that this aligns with recent global trends in aviation weapons systems.