KAI rose 7.7% on Nov. 11; broker valuation benchmarks differ

According to Hankyung’s market data, Korea Aerospace Industries (KAI) closed at 109,000 won on Nov. 11, up 7.71%, against a 2.60% KOSPI gain. The close was 49.4% below its 52-week high of 215,500 won.

A review of 10 broker reports published on Nov. 4 shows target cuts alongside Buy ratings, with two valuation assessments using different benchmarks. In that day’s Kiwoom Securities report, the target fell to 185,000 won from 230,000 won, a 19.6% reduction.

What do the valuation comparisons measure?

Against global peers, KAI traded at a premium in Daishin Securities’ Nov. 4 assessment: its 36-month forward price-to-earnings ratio was 20.3 times, versus a peer average of 18.0 times. The brokerage argued that a first KF-21 export contract in the fourth quarter could ease valuation concerns.

Against its own history, the stock was below average in Eugene Investment & Securities’ report that day. Its consensus-based 12-month forward P/E was 24.2 times, compared with a historical average of 26.5 times.

A peer premium and a historical discount can coexist. The different earnings horizons also prevent a direct comparison. Neither Nov. 4 assessment establishes KAI’s valuation against those benchmarks at the Nov. 11 close.

How far apart are the targets?

The targets in the 10 Nov. 4 reports reviewed here range from 135,000 won to 186,000 won. Their mean is 162,000 won, 48.6% above the Nov. 11 close. The median is 161,500 won, 48.2% above that close. These figures describe this report sample, rather than a market-wide consensus.

All 10 reports carried Buy ratings. For SK Securities, the rating is confirmed by Edaily’s Nov. 4 coverage, which reported that the brokerage maintained Buy while cutting its target from 190,000 won to 150,000 won.

Brokerage	Date	Rating	Target Price
DS Investment & Securities	Nov. 4, 2026	Buy	186,000 won
Kiwoom Securities	Nov. 4, 2026	Buy	185,000 won
Yuanta Securities Korea	Nov. 4, 2026	Buy	182,000 won
Daishin Securities	Nov. 4, 2026	Buy	173,000 won
Mirae Asset Securities	Nov. 4, 2026	Buy	173,000 won
Hanwha Investment & Securities	Nov. 4, 2026	Buy	150,000 won
SK Securities	Nov. 4, 2026	Buy*	150,000 won
Eugene Investment & Securities	Nov. 4, 2026	Buy	146,000 won
Shinhan Securities	Nov. 4, 2026	Buy	140,000 won
iM Securities	Nov. 4, 2026	Buy	135,000 won

SK’s Buy rating is sourced to Edaily’s Nov. 4 report, rather than a direct check of the brokerage’s report text.

How did one-off items affect operating profit?

KAI’s provisional consolidated third-quarter revenue rose 51.6% from a year earlier to 1.0643 trillion won. Reported operating profit increased 31.9% to 79.4 billion won, with a 7.5% margin.

Two reviews used different estimates of one-off costs. Shinhan Securities’ Nov. 4 review compared adjusted operating profit with consensus, while Hanwha Investment & Securities’ review that day assessed reported profit.

Starting with reported operating profit of 79.4 billion won, Shinhan removed 40 billion won of currency-related gains and added back 30 billion won of one-off costs. Its adjusted figure was 69.4 billion won, 8.7% below its cited consensus of 76 billion won.

For reported profit, Hanwha judged the result in line with expectations. Its analysts estimated that about 40 billion won of gains from exchange-rate-related revisions to expected costs largely offset about 37 billion won of one-off costs, including consolidation adjustments.

Delivery delays and the gap to the annual order target

An engine defect disrupted light armed helicopter (LAH) deliveries. In its Nov. 4 report, iM Securities expected only two or three additional deliveries by year-end after seven in the first half, leaving about 20 of the planned 30 delayed.

The report described a delivery-related revenue impact of 400 billion to 500 billion won relative to KAI’s initial annual guidance of 5.7 trillion won. Separately, its own 2026 revenue forecast was 5.0763 trillion won, as shown in its published estimates.

At the end of September, bookings were about 8.2 trillion won short of the 10.4 trillion won annual order target, according to Eugene. That calculation did not establish the gap as of Nov. 11.

Fourth-quarter profit also faced possible additional Iraq bad-debt provisions. In its Nov. 4 report, Yuanta Securities Korea put potential in-house development spending at up to 100 billion won for the quarter, compared with 60 billion won over the first nine months.

What do the share flows show?

Naver Pay Securities’ investor-trading data show net purchases of 30,073 KAI shares by foreign investors and 57,936 shares by institutions on Nov. 11.