[Click eStock] "Hyundai Rotem, Earnings Expected to Gradually Improve"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 20,000 Won... Closing Price on 26th at 15,300 Won

[Asia Economy Reporter Kum Bo-ryeong] An analysis has emerged predicting that Hyundai Rotem's second-quarter performance will improve compared to last year.

According to Daishin Securities on the 29th, Hyundai Rotem's second-quarter results are estimated to be sales of 684.2 billion KRW and an operating profit of 12.3 billion KRW. Compared to the previous year, sales are expected to increase by 8.3%, and operating profit is expected to turn positive.

By business division, the railway sector is expected to see sales of 365.1 billion KRW, a 7.5% increase from the previous year. Operating profit is forecasted at 6.6 billion KRW, which contrasts with the operating loss of 43.6 billion KRW recorded in the second quarter of last year. Lee Dong-heon, a researcher at Daishin Securities, stated, "The defense sector will normalize deliveries due to the resolution of the K2 tank transmission issue, resulting in sales of 167.6 billion KRW and operating profit of 6.7 billion KRW, representing increases of 20.5% and 286.1% respectively compared to last year." He added, "The plant sector is expected to see sales of 104.7 billion KRW, a 3.9% decrease from the previous year, with an operating loss of 3 billion KRW. However, although losses will continue due to a decrease in order backlog, the deficit is expected to narrow due to a reduction in low-priced orders." Hyundai Rotem also recorded approximately 40 billion KRW in other income from the sale of Green Energy shares and the Uiwang site outside of operating activities.

The order backlog continues to set new records. In the first quarter, the order backlog reached 9.2944 trillion KRW, a 19.2% increase from the previous year, marking an all-time high. The researcher said, "The railway order backlog alone stands at 7.8 trillion KRW, securing six years' worth of volume compared to last year's railway sales of 1.3 trillion KRW." He added, "The defense sector holds a backlog of 924 billion KRW and expects new orders around 1 trillion KRW this year."

Accordingly, Daishin Securities has issued a 'Buy' investment rating for Hyundai Rotem with a target price of 20,000 KRW. The closing price on the 26th was 15,300 KRW.

This content was produced with the assistance of AI translation services.