DAISHIN SECURITIES suggested a target stock price of 28,000 won for Korean Air. This comes from the outlook that free cash flow (FCF) will be maintained despite scheduled large-scale capital expenditure (CAPEX) for the introduction of new aircraft. The investment opinion remains 'buy.'
According to DAISHIN SECURITIES on the 29th, Korean Air signed a purchase plan to introduce a total of 103 aircraft from Boeing on August 25, when the South Korea-U.S. summit was held. The amount for aircraft investment alone is 50.5 trillion won, and purchases for aircraft engines and engine maintenance services are also planned.
Yang Ji-hwan, an analyst at DAISHIN SECURITIES, said, "With the acquisition of Asiana Airlines, the Korean Air group is operating 301 aircraft as of the end of the first half of 2025, and if we include the 191 aircraft ordered prior to the summit, a total of 297 aircraft have been ordered."
Korean Air previously announced aircraft purchase contracts totaling approximately 81 trillion won through five new facility investment disclosures. Even considering that the actual investment amount typically equals about 50% of the publicly disclosed amount, it is estimated that annual CAPEX investments of over 3 trillion won will be executed.
Analyst Yang noted, "Korean Air's consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025 is expected to be around 5 trillion won. Even considering a maximum annual CAPEX of 3.5 trillion won, consolidated financial costs of 1.2 trillion won, and annual dividend payments, FCF is expected to maintain a positive (+) flow."