[Click eStock] "Hyundai Rotem Reflects Additional Contract in Poland... Target Price Raised to 50,000 Won"

On the 4th, Korea Investment & Securities raised the target price for Hyundai Rotem to 50,000 KRW, reflecting the news of an additional contract with Poland. The investment rating was maintained as Buy.

Namhyun Jang, a researcher at Korea Investment & Securities, stated, "We incorporated the estimated additional contract with Poland worth approximately 4.5 trillion KRW into our forecast," adding, "Accordingly, we have revised upward the operating profit estimates for 2026 and 2027 by 305% and 562%, respectively, compared to previous estimates."

He continued, "As Hanwha Aerospace's stock price has risen sharply, increasing volatility and making investment points similar, Hyundai Rotem could be an alternative," and noted, "There is an export pipeline that can lead additional growth with performance improvements continuing through 2028."

Hyundai Rotem's consolidated sales for the first quarter are expected to reach 782 billion KRW, with an operating profit of 57.4 billion KRW. These figures exceed the consensus by 3.3% and 60.9%, respectively.

He anticipated that an additional contract with Poland would be signed within this year due to the increased limit of the Export-Import Bank. Researcher Namhyun Jang explained, "Although financial support from the Korea Trade Insurance Corporation and the Development Bank, as well as the purchase of Polish government bonds, are being considered, it is difficult at this point to predict the feasibility of these measures," and added, "We reflected an estimated contract size similar to the first contract, approximately 4.5 trillion KRW, considering only the Export-Import Bank's financial support limit."