[Click eStock] "For Hyundai Rotem, New Order Performance Is the Most Critical Factor"

Hana Securities announced on February 2 that it is maintaining its target price for Hyundai Rotem at 2,830,000 won and its "Buy" investment rating.

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In a report released the same day, Hana Securities analyst Chae Unsaem stated, "The fourth-quarter results fell short of market consensus," adding, "This was due to lower profitability in the second batch of Polish defense solutions compared to the first batch, as well as weaker-than-expected domestic sales."

However, profitability in the Defense Solutions division is expected to improve gradually throughout this year. The company explained that the profitability of the second batch for Poland could improve incrementally based on the experience gained from the first batch.

Looking at the main order pipelines, discussions in Iraq may resume after the cabinet formation process is completed following the general elections, while in Romania, a bid announcement is expected within the year.

Analyst Chae emphasized, "Securing new orders is more important than short-term performance," adding, "While this year's annual operating profit is unlikely to deviate significantly from consensus, next year's results could vary greatly in terms of operating profit and profitability depending on order performance in 2026."

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