Aviation Ready to fly high Korea’s aviation industry offers an attractive long-term investment opportunity We believe Korea’s aircraft and parts industry is well-poised for exceptional long-term Overweight (Maintain) growth, supported by the stable expansion of the global civil aircraft market and the Korean government’s policy support. Domestic parts suppliers should step out of the shadows of Korea Aerospace Industries (KAI) and experience strong growth on their own Industry Report thanks to technological advances. Within a short time span, Korea has evolved into a August 27, 2015 manufacturer of parts, civil aircraft, and military aircraft. We believe the domestic development of civil aircraft will become possible within the next decade, aided by the accumulation of technology from manufacturing advanced fighter jets. Daewoo Securities Co., Ltd. We identify four potential areas of growth for the Korean aviation industry: 1) the [Shipbuilding & Machinery] manufacturing of civil aircraft parts, in which domestic suppliers should gain market share; 2) light-armed helicopters (LAH), light civil helicopters (LCH), and fighter jet (KF-X) Ki-jong Sung development projects, which are expected to commence this year, 3) maintenance, +822-768-3263 repair, and operations (MRO) for civil and military aircraft, and 4) the US next-generation
[email protected] trainer program, known as T-X. Michael Yun KAI (047810 KS/Buy/TP: W143,000): Leader of Korea’s aviation industry +822-768-4169
[email protected] KAI is Korea’s leading aviation company, manufacturing civil aircraft parts (for Boeing and Airbus), as well as military aircraft, such as the T-50 and Surion.