KAI stock price gains on surprise earnings

[Courtesy of Korea Aerospace Industries, Ltd.]

South Korea’s Korea Aerospace Industries, Ltd. (KAI) saw its shares rise more than 4 percent in early trading on Tuesday, a day after it announced strong earnings.

KAI shares were trading at 56,900 won ($41.12) as of 9:33 a.m. on Tuesday, up 2,300 won or 4.21 percent from the previous day. The stock rose by 2,700 won, or 4.95 percent, to 57,300 won at one point during the session.

The Korean aerospace and defense company reported consolidated sales of 891.8 billion won and an operating profit of 74.3 billion won for the second quarter of 2024 the day before. This is an increase of 21.6 percent and 785.7 percent respectively, compared to the same period during the previous year. The operating profit also exceeded the market consensus forecast of 51.4 billion won compiled by Yonhap Infomax by 44.7 percent.

Hana Securities Co. raised its target price for KAI from 60,000 won to 70,000 won on the same day, saying, “Additional orders are expected within 2024, and the company’s performance is expected to improve in the second half of the year.” Kiwoom Securities Corp. also increased its target price to 75,000 won from 72,000 won.