Kiwoom Securities on the 30th said demand for Cheongung II missiles is expected to rise at LIG Defense&Aerospace as air-defense missile inventories were heavily depleted during the Middle East war. It maintained a Buy rating and raised its target price to 12.5 million won from before. The previous day's closing price of LIG Defense&Aerospace was 968,000 won.

LIG Defense & Aerospace says it is participating in the maritime-focused defense expo Sea-Air-Space Exposition 2026, held in Maryland, United States, through the 22nd local time, on the 21st. The photo shows the LIG D&A booth. /Courtesy of Yonhap News

Air-defense interceptor missile inventories in the Middle East are plunging due to the Middle East war. The International Institute for Strategic Studies analyzed that stockpiles of air-defense and precision-strike missiles fell sharply during the 39 days of combat.

Kiwoom Securities explained that for Patriot Advanced Capability (PAC)-3 missiles, which operate at an interception altitude similar to LIG Defense&Aerospace's Cheongung II, it is understood that 45% to 61% of the roughly 2,300 rounds in existing stockpiles have been expended.

Lee Han-gyeol, an analyst at Kiwoom Securities, said, "Because the annual production volume of PAC-3 is estimated at about 650 rounds, it will take considerable time to rebuild the depleted stockpiles," and added, "Accordingly, interest in Cheongung II is expected to increase in the Middle East to supplement Patriot."

LIG Defense&Aerospace currently holds a backlog of about 10 trillion won for deliveries of Cheongung II batteries and ammunition in the Middle East.

The analyst said, "With orders for air-defense missiles increasing in the aftermath of the recent Middle East war, the number of countries adopting Cheongung II, including Qatar and Kuwait, is expected to expand."

Kiwoom Securities forecast this year's results for LIG Defense&Aerospace at sales of 5.03 trillion won and operating profit of 424.2 billion won. Those are up 16.9% and 32.8%, respectively, from a year earlier.

The analyst added, "Beyond Cheongung II, it also has various order momentum drivers," noting, "It recently signed a Haegung supply contract with Malaysia worth about 140 billion won, and the U.S. Bigung program that had been on hold is also expected to be resumed." The analyst also said the company is preparing to expand orders for the Vision 60 from its subsidiary Ghost Robotics.

Meanwhile, for first-quarter results this year, it forecast sales of 1.057 trillion won and operating profit of 120.3 billion won. Those are up 16.5% and 5.9%, respectively, from a year earlier.

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