[Featured Stock] Hyundai Rotem Loses Norwegian K2 Tank Order... Drops Over 5%

[Asia Economy Reporter Son Sunhee] On the 6th, Hyundai Rotem's stock price is showing a decline of over 5%. This is interpreted as the aftermath of the final cancellation of the expected export of K2 electronic systems to Norway.

As of 10:06 AM on the same day, Hyundai Rotem's stock price is trading at 26,800 KRW, down 5.47% from the previous close.

The Norwegian government announced on the 3rd (local time) that it will introduce the new German-made "Leopard 2" tank as the next model to replace its aging tanks. Prime Minister Jonas Gahr Støre stated at a press conference that they plan to order 54 Leopard 2A7 main battle tanks from Germany's Krauss-Maffei Wegmann (KMW). Hyundai Rotem's K2 tank competed until the final stage but ultimately failed to secure the contract.

However, Hyundai Rotem recorded an operating profit of 147.4 billion KRW last year, an increase of 83.9% compared to the previous year, showing strong performance. Hyundai Rotem stated that this was due to "increased sales and improved profitability from export growth and productivity enhancement."

Additionally, on the 2nd, Hyundai Rotem signed a contract worth 174.1 billion KRW for the "Altay tank mass production parts supply project" with T?rkiye. Securities firms predict that operating profit this year will also increase by about 30%.