REAL-TIME GLOBAL RESEARCH
*J.P. Morgan Asia FTM 3 Jul 26: Place LIG D&A on +ve CW; Hyundai Rotem: Expect 2Q beat; Raise LG Innotek PT; u/g Bajaj HF to N, place on +ve CW; CATL keeps charging ahead of peers; India Pharma growth. Thu Jul 02 2026
Research evidence excerpt
*J.P. Morgan Asia FTM 3 Jul 26: Place LIG D&A on +ve CW; Hyundai Rotem: Expect 2Q beat; Raise LG Innotek PT; u/g Bajaj HF to N, place on +ve CW; CATL keeps charging ahead of peers; India Pharma growth. Thu Jul 02 2026
Asia Pacific Equity Research
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Asia First to Market 03 July 2026
Top Stories
CW | LIG D&A (079550.KS, OW – W766,000), South Korea (Simon Han)
Placing on Positive Catalyst Watch: 2Q26 earnings season to be critical in shaping LT earnings
outlook
We place LIG D&A on Positive Catalyst Watch - the stock remains our favorite pick in Korea defense.
Heading into 2Q earnings season, we view LIG D&A as (1) best positioned for a 2Q beat and earnings
upgrades within the sector, (2) having higher ramp confidence, as the W500B policy-backed CAPEX
(company + Korean government demand-confidence signal) converts to output, and (3) having incremental
order optionality (Europe/ME/ASEAN pipeline). The stock remains range bound and the sector has broadly
de-rated in June as investors have looked for clearer post US-Iran MOU order conversion signals but
received limited incremental visibility. We view the debate as timing-related rather than demand-related. LIG
D&A’s valuation is not stretched vs. global peers (~30x 27E P/E based on BBGe vs. ESLT US 44x; 25x on
2027E JPMe) and the next catalyst is the 2Q earnings print/callon 7 Aug, where 2H cadence and order
conversion specificity could drive revisions. Remain OW with a Jun-27 W1,100,00 price target (rolled
forward from Dec-26).
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