[Featured Stock] Hyundai Rotem Rises 3.8% Intraday on Strong Earnings and K2 Tank Export Expectations

[Asia Economy Reporter Minji Lee] Hyundai Rotem is showing a rise of over 3% during trading hours.

At 9:36 a.m. on the 26th, Hyundai Rotem was trading at 26,000 KRW, up 3.79% from the previous trading day. The company's stock price rose to as high as 26,300 KRW during the session.

It is estimated that the stable performance in the second quarter played a significant role in the stock price increase. The day before, Hyundai Rotem reported an operating profit of 31.4 billion KRW for the second quarter, a 99% growth. Sales increased by 10% to 785.8 billion KRW. The Rail Solution division grew by more than 20% compared to the same period last year, driving the strong performance.

Another reason Hyundai Rotem is attracting investors' attention is the export potential of the K2 tank. Although nothing has been officially confirmed yet, it is reported that a European country plans to purchase domestic weapons, including the K2 tank, in a deal worth over 10 trillion KRW.

Na Seungdoo, a researcher at SK Securities, said, “The company is maintaining a stable growth trend in performance, and expectations for overseas exports, which will serve as a foundation for mid- to long-term growth, are increasing. Export growth could be an important momentum that leads to mid- to long-term scale expansion and profitability improvement, so continuous monitoring of the final export negotiations and progress is necessary.”