Shares of LIG Defense & Aerospace (079550) plunged immediately after the company disclosed its second-quarter earnings on the 6th, prompting successive activations of the Volatility Interruption (VI) mechanism.

According to the Korea Exchange, a dynamic VI was first triggered on the NXT at 2:26 p.m. that day, followed by an additional KRX static VI at approximately 2:28:30 p.m., about two minutes later. The VI was lifted at 2:30:39 p.m., but the downward trend did not reverse.

As of 2:39 p.m., LIG Defense & Aerospace was trading at 663,500 won, down 16.85% (134,500 won) from the previous trading day.

The direct trigger for the plunge was the Q2 earnings. On a consolidated basis, the company reported Q2 revenue of 1.1101 trillion won and operating profit of 105.7 billion won. Compared to the same period a year earlier, revenue and operating profit increased by 17.4% and 29.5%, respectively. However, on a quarter-on-quarter basis, revenue declined 4.9% and operating profit fell 38.2%. Net income came in at 78.2 billion won, down 24.5% from the same period a year earlier and down 42.3% from the previous quarter.

The market attributes the sell-off to the magnitude of the earnings decline from the previous quarter, despite the company maintaining a year-over-year profit growth trend. As attention focuses on the future direction of the stock price, the broader KOSPI index, to which LIG Defense & Aerospace belongs, is also showing weakness of more than 4% compared to the previous day.

[※ This article is not intended to solicit investment, and all investment decisions and responsibilities lie solely with the investor.]