April 26, 2024

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[THE INVESTOR] LIG Nex1’s profits will return to normal this year as it wins more orders, said NH Investment and Securities on April 10, maintaining a “buy” recommendation. 

The amount of new orders peaked in 2014 at 3.1 trillion won (US$2.90 billion) and has been declining to reach 1.07 trillion won last year, but will regain to 2 trillion won this year, said analyst Yoo Jae-hun.

Manufacturing orders in domestic market will increase while expectations are rising for expanding exports of guided weapons to Middle East and India. This will lead to an upturn in exports revenue to 300 billion won this year from last year’s 260 billion won, forecast the analyst. 

Its earnings last year were gravely dented in the fourth quarter but will stabilize from this year as risks of its development projects shrink, according to Yoo. 

Estimated profits, however, have been lowered and accordingly the target price to 64,000 won from 83,000 won, said the analyst, adding that its current corporate value is currently low but will noticeably improve from the latter half.

By Hwang You-mee (glamazon@heraldcorp.com)