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JONBUR Research · Update note

LIG Defense&Aerospace · 079550 · Aerospace & Defense

LIG Defense&Aerospace: Shares Fall 17.2% in Five Days on Elevated Volume

Why this report

Written after:

  • Big price moveShares down 17.2% over 5 trading days on 2.2× normal volumeOct 23, 2026

The shares fell 17.2% over five trading days to 23 October 2026 on 2.2× normal volume, closing at ₩475,500. The drop widens the gap with our model estimate, which is far below the price, and the data does not explain the cause.

Written Oct 24, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

From 19 October to 23 October 2026 the share price fell 17.2% on volume 2.2 times normal. The close on 23 October was ₩475,500, giving a market cap of ₩10.5T. The shares are down 31.3% over one month and 37.6% over three months, but up 3.3% over one year. The price is 57.5% below the 52-week high of ₩1,118,000 and 32.1% above the low of ₩360,000.

No filing excerpts were provided, so we cannot describe their content. The recent filing list includes two items dated 22 October: a suspension of transactions with a business partner and an exchange inquiry about a news report or price move. Their details, including any size relative to revenue, are not available. A news headline from 18 October from Maeil Business Newspaper says development costs are a drag and that a broker cut its target price.

Over the last 20 days foreign investors were net sellers of ₩86.8B, while institutions bought ₩49.3B and retail investors bought ₩43.3B. Foreign ownership is 26.3%, up from 25.9% sixty days ago. The short balance is 0.4%.

What it changes for the thesis

The previous report on 13 October described fast growth and improving margins alongside strain: negative free cash flow, thin cash and high leverage. It also said the cause of the earlier decline could not be assessed. The price fall does not change the filed numbers. Trailing revenue is ₩4.7T, operating margin 8.6%, free cash flow about -₩1.3T, cash ₩42.7B, borrowings ₩1.66T and liabilities 434.1% of equity.

The 22 October filings and the headline about development costs may relate to the decline, but the data does not show their size or effect. The funding-strain side of the thesis, including the rights offering decision amended on 4 September, remains unresolved. This update does not confirm or refute either side.

What it changes for the valuation

At ₩475,500 the P/E is 36.5, P/B 6.6 and P/S 2.2, with a dividend yield of 0.6% and enterprise value of ₩12.1T. The previous report had P/E 45.7 and P/B 8.2 at ₩595,000. The multiples have fallen but remain above the 2025 year-end P/E of 36.6 only marginally and the P/B of 6.5 slightly. Peers with data: Hanwha Aerospace P/E 20.3 and P/B 3.4, Korea Aerospace Industries P/E 56.2 and P/B 5.2.

The previous report had no model fair value. Our model now gives a range per share of ₩113,433 (bear), ₩293,561 (base) and ₩606,476 (bull), using a discounted cash flow at a 6.9% rate on trailing figures to H1 2026. This is a model estimate based on the assumptions shown, not a price target. The price is above the base case and within the bear-to-bull range. The wide spread shows how sensitive the result is to assumptions, especially given negative free cash flow.

Closing view

The sharp fall on heavy volume is a market event whose cause the data does not establish. Foreign selling, a broker's cut citing development costs, and two filings on 22 October are possible context, but their impact is unknown. The filed fundamentals are unchanged: strong growth and margins alongside heavy funding needs. The price is lower than at the previous report, yet the model's base estimate remains well below it, and the range is very wide. The evidence remains mixed and incomplete.

Model estimate of fair value

Bear
₩113,433
-75%
Base
₩293,561
-35%
Bull
₩606,476
+35%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 24, 2026Update noteBig price moveLIG Defense&Aerospace: Shares Fall 17.2% in Five Days on Elevated Volume
  2. Oct 13, 2026InitiationLIG Defense&Aerospace: Rising Revenue and Profit, Negative Free Cash Flow and a Rights Offering Filing

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information