[Market Focus] Hyundai Rotem Rises Over 4% on Expectations of Additional K2 Tank Orders

Hyundai Rotem's stock price is rising on May 21, amid expectations for additional orders of the K2 tank.

As of 9:48 a.m. on May 21, Hyundai Rotem was trading at 118,700 won, up 5,000 won (4.40%) from the previous trading day.

In the first quarter, Hyundai Rotem posted sales of 1.1716 trillion won and an operating profit of 202.8 billion won. These figures represent increases of 57.3% and 354.0%, respectively, compared to the same period last year.

On this day, Hyundai Motor Securities maintained a "buy" investment rating and a target price of 150,000 won for Hyundai Rotem, stating that "the company is expected to continue its growth trend in the second half of the year." Kwak Minjeong, a researcher at Hyundai Motor Securities, said, "Although the company was affected by a decrease in the number of working days in the first quarter, it is expected to maintain its recovery from the second quarter onward. The order for K2 tanks from Poland is scheduled to result in the delivery of 82 units this year."

Kwak also noted, "The K2 tank is drawing attention, and expectations for orders from Peru are increasing. Based on this, the customer base in South America is expected to expand. Peru has selected the K2 tank as a candidate to replace its aging Russian T-55 tanks. The country is also demanding local participation in the mass production of the K2 tank, which is fueling high expectations for an order within this year."

She added, "After the second round of orders from Poland, the possibility of additional K2 tank orders will be a factor in the stock's revaluation. In addition, continued orders for group company projects from Ecoplant are expected to support stable growth."