Corporate Logo(source: poongsan.co.kr)
Eugene Investment & Securities raised its target price for Poongsan (103140) from 86,000 won to 158,000 won on July 15, citing expectations of structural improvement in the company’s earnings. The brokerage maintained its “Buy” rating.
Research analyst Lee Yoo-jin commented, “We forecast Poongsan’s second-quarter revenue and operating profit at 1.2875 trillion won and 120.5 billion won, respectively.”
Despite the completion of most first-phase deliveries to Poland, the company has already achieved 55% of its annual guidance.
Lee noted, “Last year, the first-phase Poland contract contributed 252.8 billion won in defense operating profit. Although most of those shipments have now been fulfilled, sustained ammunition demand is expected to support robust profitability. In addition, PoongsanFNS—Poongsan’s wholly owned subsidiary—broke ground on its second plant in July, further validating the continued strength in defense demand.”
She added, “There is no longer a reason to exclude a defense valuation premium for Poongsan,” estimating second-quarter operating profit from the copper alloy segment at 30 billion won and from the defense segment at 62.5 billion won.
Lee further noted that deliveries related to the second-phase Poland contract are expected to begin in 2025 and continue into 2027. Additional contract pipelines from other Korean defense firms also remain a promising factor for long-term growth.
*[KOSPI] Poongsan(103140), a subsidiary of the Poongsan Group, is divided into the new business sector(production of copper and copper alloy products) and the defense business sector(production of military ammunition, precision forging, etc.). The market capitalization is 3.688 trillion won (as of July 14, 2025, closing price).
Corporate Logo(source: poongsan.co.kr)
Eugene Investment & Securities raised its target price for Poongsan (103140) from 86,000 won to 158,000 won on July 15, citing expectations of structural improvement in the company’s earnings. The brokerage maintained its “Buy” rating.
Research analyst Lee Yoo-jin commented, “We forecast Poongsan’s second-quarter revenue and operating profit at 1.2875 trillion won and 120.5 billion won, respectively.”
Despite the completion of most first-phase deliveries to Poland, the company has already achieved 55% of its annual guidance.
Lee noted, “Last year, the first-phase Poland contract contributed 252.8 billion won in defense operating profit. Although most of those shipments have now been fulfilled, sustained ammunition demand is expected to support robust profitability. In addition, PoongsanFNS—Poongsan’s wholly owned subsidiary—broke ground on its second plant in July, further validating the continued strength in defense demand.”
She added, “There is no longer a reason to exclude a defense valuation premium for Poongsan,” estimating second-quarter operating profit from the copper alloy segment at 30 billion won and from the defense segment at 62.5 billion won.
Lee further noted that deliveries related to the second-phase Poland contract are expected to begin in 2025 and continue into 2027. Additional contract pipelines from other Korean defense firms also remain a promising factor for long-term growth.
*[KOSPI] Poongsan(103140), a subsidiary of the Poongsan Group, is divided into the new business sector(production of copper and copper alloy products) and the defense business sector(production of military ammunition, precision forging, etc.). The market capitalization is 3.688 trillion won (as of July 14, 2025, closing price).