[Click eStock] "Hyundai Rotem's Earnings Surge with Poland K2 Tank Export... Target Price Up"

NH Investment & Securities analyzed on the 30th that Hyundai Rotem's performance is expected to improve due to increased exports of the Polish K2 tank. The investment opinion was maintained as 'Buy,' and the target price was raised to 60,000 KRW.

NH Investment & Securities explained that Hyundai Rotem's operating profit in the second quarter recorded 113 billion KRW, exceeding expectations. Lee Jae-kwang, a researcher at NH Investment & Securities, said, "The estimates and consensus were significantly surpassed, which is presumed to be due to the increased exports of the Polish K2." He added, "In the second quarter, defense solution exports amounted to 374 billion KRW, accounting for about 66% of the division's sales, marking the highest ever export and export ratio."

He also expected the performance improvement to continue. He stated, "Future growth led by defense solutions is expected to continue with the second contract for the Polish K2 tank, the fourth domestic mass production, and the first contract with Romania." He explained, "According to media reports, the second contract for the Polish K2 tank is expected to be for 180 units, worth approximately 7 trillion KRW, and it is anticipated to be signed as early as September or by the end of the year at the latest."

He continued, "Romania is expected to introduce a total of 300 units," and emphasized, "The fourth domestic mass production contract is expected in October this year, and according to the Defense Acquisition Program Administration, the project cost is about 2 trillion KRW, with plans to mass-produce around 150 units by 2029."

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