[Featured Stock] Hyundai Rotem Hits New High Amid Expectations for K2 Tank Phase 2 Execution Contract Celebration

Traded at 55,900 Won, Breaking All-Time High
Second Execution Contract Period Arrives After First Contract Fulfillment
Export Contract Timing More Important Than Performance... Reflecting Expectations

Hyundai Rotem, on the verge of signing the second execution contract for K2 tanks with Poland, has resumed its record-high rally after about a month.

As of 9:51 AM on the 20th, Hyundai Rotem is trading at 55,900 KRW, up 3.71% (2,000 KRW) compared to the previous close. This surpasses the all-time high of 55,800 KRW recorded on August 28. After falling below the 50,000 KRW mark earlier in September, Hyundai Rotem’s stock price has regrouped and is charging again toward its highest levels.

According to the defense industry, Hyundai Rotem is preparing for the second execution contract for the export of K2 tanks to Poland. In 2022, a contract was signed for the export of 1,000 units (approximately 4.5 trillion KRW), and the first execution contract for 180 units was signed, delivering 46 units by the first quarter of this year. Now, the time for the second execution contract has arrived. In the industry, the basic contract is non-binding and only agrees on the approximate scale, while the execution contract is binding.

Choi Kwang-sik, a researcher at Daol Investment & Securities, said, "Hyundai Rotem is negotiating the 2-1st phase contract for Poland’s K2,” adding, “Due to recent stock price adjustments, the price-to-earnings ratio (PER) of some defense stocks is below 20 times for this year, and the 2026 PER ranges from 11 to 14 times, indicating potential for stock price growth again.” He added, “The timing of the export contract is more important than the earnings,” and “This is a phase where expectations are reflected more than the main contract.”