[Featured Stock] Hyundai Rotem Hits 52-Week High on Continued Defense Sector Leadership and Strong Earnings Outlook

Hyundai Rotem's stock price is on the rise. Expectations that defense-driven earnings will continue seem to be influencing the stock price.

At 10:01 AM on the 29th, Hyundai Rotem was trading at 50,600 KRW, up 5.97% from the previous day. During the session, it rose to 50,700 KRW, marking a 52-week high.

Lee Sang-hyun, a researcher at BNK Investment & Securities, commented on Hyundai Rotem's Q2 earnings: "The Korean military gap filler volume of 32 units was concentrated in Q1, causing a slowdown, but this was resolved in Q2 as defense exports increased. Looking at sales by segment, Rail Solutions recorded a slight decline due to a temporary decrease in volume, while Defense Solutions increased by 17% reflecting orders such as the K2 units for Poland, and Eco Plant grew by 26% due to deliveries of equipment to Hyundai Motor factories."

He added, "This year and next, deliveries of 56 and 96 K2 tanks to Poland are scheduled respectively, so earnings are expected to continue on an upward trend. Additionally, the K2 tank order for Romania is expected to be finalized around the end of this year or early next year."