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The The author is a NH analyst Investment & Securities. He can be reached at jaekwang.rhee@nhqv.com — Ed.


Both Earnings in 4Q23, 2023 and beyond reach historic highs. This Earnings should be steady this year. Share price momentum is driven by a rise in overseas orders. KAI targets W3tn in aircraft export orders by 2024, which is a 2.6% increase year-on-year.


Earnings to stay steady in 2024


KAI has presented a similar sales forecast of W3.8tn for 2024. Due FA-50 sales have decreased. Poland (12 units in 2023 → 4 units in 2024), aircraft exports should drop by around W80bn y-y, while sales at the domestic division are likely to fall by about W40bn y-y due to the end of development of the KF-21 system. That According to the report, aircraft part sales will increase by W100bn, mainly due to an increase in production of commercial aircraft.


Share Prices will be driven up by a 2.6x rise in overseas orders


This KAI’s share value is likely to be driven this year by overseas orders. The Firm targets W3tn in aircraft exports, a 26x increase year-on-year. The Guide includes Surion Exports to the Middle East Exports of W1.7tn FA-50 and FA-50 to Central Asia The W1.1tn. Considering In light of the increased threat to global security, we are confident that additional US orders will be forthcoming. Africa, South America. EuropeEven if they are not expected to happen this year, they are still highly probable, despite not being included in the guidance. The The US trainer replacement project will likely proceed to the Request For Proposals (RFP stage) after 3Q24.


4Q23 review: Record Earnings on FA-50 Delivery to Poland


Both Deliveries of 12 FA-50 units have led to historic earnings in the 4Q23 quarter and for 2023. Poland. Last Quarterly, OP exceeded the consensus by 23%. Thanks New orders for the LAH’s second mass production phase (worth W1.4tn) reached W2.8tn. This allowed the firm to reach its 2023 annual guidance on new orders. The The order backlog of the company was W21.8tn by end-4Q23. This represents a 6% increase on a year-over-year basis. This This is approximately the same as six years of work based on sales for 2023.

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