Korea Aerospace Industries: Downgrade to Neutral; earnings cut inevitable after 2Q miss; order pathway remains cloudy

研报英文原文证据摘录

Korea Aerospace Industries: Downgrade to Neutral; earnings cut inevitable after 2Q miss; order pathway remains cloudy

J P M O R G A N Asia Pacific Equity Research

30 July 2026

Korea Aerospace Industries ▼Neutral

Previous: Overweight

Downgrade to Neutral; earnings cut inevitable after 2Q 047810.KS, 047810 KS

Price (29 Jul 26):W116,800

miss; order pathway remains cloudy ▼Price Target (Dec-27):W130,000

Prior (Jun-27):W210,000

We downgrade KAI to Neutral with a Dec-27 PT of W130K following a Korea Defense

ACdisappointing 2Q26 print and still-limited near-term order visibility. While Simon Han

revenue was broadly in line with expectations, 2Q OP materially missed on a (82-2) 758-5711

combination of W19B one-off provisions, export margin pressure from FX-driven simon.x.han@jpmorgan.com

cost headwinds, and a weaker domestic margin profile amid the absence/delay of J.P.BranchMorgan Securities (Far East) Limited, Seoul

LAH-related sales. Importantly, we are turning more cautious on the export

Jeongsuk Woo

trajectory as Poland FA-50 sales slowed sharply in 2Q and export OPM contracted (82-2) 758 5703

even with Malaysia FA-50 deliveries scheduled from 4Q, raising questions on jeongsuk.woo@jpmorgan.com

execution and profitability. Reflecting these dynamics and incremental company J.P. Morgan Securities (Far East) Limited, Seoul

Branch

color pointing to LAH delivery risk, Iraq pipeline delays, and slower-than-

expected Poland progress, we lower our 2026/2027 OP estimates by 22%/19%; we Karen Li, CFA

(852) 2800-8589

also lower our target P/E to 21x (from 30x) to pencil-in deteriorating investor karen.yy.li@jpmorgan.com

sentiment. Without clear order catalysts, we expect the shares to remain range- J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

bound.