[Click eStock] "Hyundai Rotem, Earnings and Order Momentum to Come Simultaneously"

On the 2nd, iM Securities evaluated that Hyundai Rotem will experience both earnings and order momentum simultaneously. No investment opinion or target price was provided.

iM Securities forecasted that Hyundai Rotem's consolidated sales for the third quarter will increase by 20.7% year-on-year to 1.1185 trillion KRW, and operating profit will rise by 184.2% to 116.8 billion KRW.

Lee Sangheon, a researcher at iM Securities, stated, "Since Russia's invasion of Ukraine in 2022, the European security landscape has inevitably led European countries to increase defense budgets and military build-up for the time being. Especially in Eastern European countries, modernization of former Soviet weapon systems is accelerating to strengthen defense capabilities, leading to defense policies that involve importing military equipment from allied and partner countries."

According to the researcher, the record-high performance achieved in the second quarter of this year will continue into the third quarter and further accelerate in the fourth quarter. He explained, "Sales will increase and performance will improve due to the increased volume reflecting the progress rate of K2 tanks for Poland and the rise in progress rates. Above all, in the fourth quarter of this year, under peak season conditions, not only the 38 units shipped in the second half but also the 96 units to be shipped next year will be added as progress rate sales, accelerating the record-high quarterly performance."