[Featured Stock] Hyundai Rotem Expected to Achieve Record Quarterly Earnings, Up 5.74%

Hyundai Rotem's stock price is on the rise, with the highest-ever quarterly performance expected in the fourth quarter of last year.

As of 9:08 AM on the 7th, Hyundai Rotem was trading at 55,300 KRW, up 3,000 KRW (5.74%) from the previous trading day.

On the same day, Korea Investment & Securities maintained a buy rating and a target price of 83,000 KRW for Hyundai Rotem. It forecasted that Hyundai Rotem's consolidated sales for the fourth quarter of last year would reach 1.2733 trillion KRW, and operating profit would be 167.2 billion KRW, representing increases of 28.7% and 139.7% respectively compared to the same period last year.

Researcher Jang Nam-hyun of Korea Investment & Securities said, "Compared to the market consensus, sales are 2.1% below expectations, while operating profit exceeds expectations by 7.7%. This is due to delivering 28 units of the Polish K2 tanks, marking the highest quarterly delivery performance."

Researcher Jang added, "The company shows high growth potential in both performance and orders this year. With an increase in deliveries of Polish K2 tanks, sales and operating profit are expected to improve by 22.4% and 38.2% respectively compared to last year. Exports of K2 tanks are also expected to increase. In addition to the anticipated second contract with Poland to be signed this month, negotiations for K2 tank exports to Romania are also ongoing."

He further noted, "Due to the stock price decline following domestic political instability, the 12-month forward price-to-earnings ratio (PER) stands at about 10.7 times. With sustained growth in performance and export momentum, the valuation attractiveness (stock price level relative to corporate value) is becoming more prominent."