[Click e-Stock] "Hyundai Wia Eases Negative Growth Concerns with Second K2 Tank Order from Poland"

On July 3, Daishin Securities assessed that Hyundai Wia has secured mid- to long-term growth visibility in its defense division, thanks to a second batch contract for K2 tanks with Poland. The firm maintained its target price at 58,000 won and its investment rating at 'Buy'.

Previously, on July 2 (local time), the Defense Acquisition Program Administration announced in Poland that Minister of National Defense Wladyslaw Kosiniak-Kamysz and Hyundai Rotem, the manufacturer of the K2 tank, had concluded negotiations for the second K2 tank contract. Although the specific contract size was not disclosed, industry sources estimate the deal to involve the delivery of 180 units, with a contract value of $6.5 billion (approximately 8.8 trillion won).

Kim Guyun, a researcher at Daishin Securities, stated, "With the inclusion of K2PL (the Polish model) deliveries and local production, the scale of the contract has expanded compared to the first contract signed in July 2022 (180 units/$3.5 billion)," adding, "This contract is expected to both strengthen the defense momentum and alleviate concerns about negative growth."

Hyundai Wia, which started as an automotive parts supplier specializing in engines and modules, is now expanding its business scope into defense by supplying artillery for K2 tanks and K9 self-propelled howitzers. The defense business, which generated annual sales of 186 billion won in 2022 (accounting for 2% of total sales), grew to 345.7 billion won last year as K2 deliveries ramped up. Kim noted, "With the completion of the first batch of K2 deliveries in 2025 and the full-scale recognition of the second batch, the company has secured visibility for robust annual growth of over 10%," adding, "Considering the potential increase in average selling price (ASP) due to K2PL deliveries and the possibility of supplying to countries other than Poland through local production in Europe, further growth is also anticipated."