The stock price of defense corporation Poongsan is showing strength in early trading on the 15th.
As of 9:26 a.m. on the same day, Poongsan shares are trading at 141,700 won, up 7.02% (9,300 won) from the previous trading day in the KOSPI market.
This appears to be influenced by a report indicating that improvements in Poongsan's performance are expected in the securities market.
Eugene Securities noted that structural improvements in Poongsan's performance are anticipated. They raised the target stock price from 86,000 won to 158,000 won.
Eugene Securities expects Poongsan to record consolidated revenues of 1.2875 trillion won and operating profits of 120.5 billion won in the second quarter of this year.
Lee Yu-jin, a researcher at Eugene Securities, said, "This year, most of the first batch has ended, yet steady demand for ammunition suggests robust operating profits are expected."
He added, "There is no longer a reason to reduce the valuation of Poongsan in the defense sector," and explained, "In addition to the supply of the second batch to Poland from next year and 2027, there is also anticipation of additional order pipelines for Korean defense companies."