IM Securities evaluated on the 30th that SNT Dynamics is at the beginning of a rise in corporate value. It is expected that performance will increase significantly due to the localization of the transmission for the K2 tank, and the stock price is also likely to rise.
Lee Sang-hyun, a researcher at IM Securities, stated, "Turkey has decided to equip the New Altay, the 3rd generation main battle tank (MBT), with SNT Dynamics' 1,500-horsepower automatic transmission," adding, "Since signing a supply contract worth approximately 92.1 billion KRW with Turkish defense system company BMC in January last year until 2027, an additional option purchase clause has extended the contract to about 175 billion KRW until 2030, totaling approximately 267.1 billion KRW in export contracts."
The researcher also said, "Regarding the K2 tank project, after completing production of 100 units in the first phase, 106 units in the second phase, and 54 units in the third phase, a fourth mass production project is planned until 2028, investing about 1.94 trillion KRW to produce an additional 150 units," and added, "Although the transmission made by SNT has relatively lower durability compared to German products, the shortcomings can be compensated through quality assurance, and considering that it is applied to the mass production of Turkey's New Altay tank, it is highly likely to be applied to the fourth mass production of the K2."
He forecasted, "If applied to the fourth mass production of the K2, it will also be applied to export volumes of Hyundai Rotem to Poland, Romania, and the Middle East, leading to improvements in sales and profitability." He continued, "It will also drive sales growth by supplying to Hanwha Aerospace's Poland-bound K9 self-propelled howitzers," and added, "Orders related to the K9 supplied to Romania may also increase."
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