Daol Investment & Securities on the 23rd said Korea Aerospace Industries (KAI) has an order guidance exceeding 10 trillion won and is nearing the KF-21's deployment and its first export contract, lifting expectations for earnings. The firm raised its target price to 210,000 won from 140,000 won and maintained a "buy" rating. The previous trading day's closing price for Korea Aerospace Industries (KAI) was 177,900 won.
In the fourth quarter last year, Korea Aerospace Industries (KAI) posted revenue of 1.4667 trillion won, up 34% from a year earlier, and operating profit of 77 billion won, up 83%, missing market expectations. One-off losses tied to delays in the Light Armed Helicopter (LAH), along with reflecting planned costs for foreign-sourced materials due to delays in the FA-50PL and a rise in the exchange rate, were the reasons.
However, steep growth is expected this year. This year's sales guidance for Korea Aerospace Industries (KAI) is a hefty 5.7 trillion won. That is because the company's key programs are shifting rapidly from development to mass production, from producing about 20 units to as many as 60.
Choi Gwang-sik, an analyst at Daol Investment & Securities, said, "Order guidance is also 10.4 trillion won, with complete aircraft exports reaching 6.5 trillion won," and added, "We expect the KF-21's first export, and estimate orders for Egypt trainers, Malaysia FA-50 phase two, and the repeatedly delayed Middle East rotorcraft."
Choi went on to say, "At the 2026 inflection point when we move from development to mass production, sales are expected to grow by as much as 55%, and we applied a fair price-to-earnings ratio (PER) of 40 times, the peak PER seen when expectations for the APT (U.S. Air Force advanced trainer) were reflected."