The securities industry forecasted on the 11th that Hyundai Rotem's operating profit for the second quarter of this year will break previous records. At the end of this month, a second contract for K2 tanks with Poland is expected to yield higher revenue than anticipated, and contracts with countries in Eastern Europe and the Middle East are also reportedly in progress. The securities industry has raised Hyundai Rotem's target stock price uniformly.
According to NH Investment & Securities, Hyundai Rotem's second-quarter performance is expected to show revenues of 1.23 trillion won and operating profits of 211 billion won. This represents increases of 12.4% and 87%, respectively, compared to the same period last year. It is anticipated that operating profits will once again surpass the quarterly record set in the first quarter.
Hyundai Rotem is expected to sign a second export contract for K2 tanks worth approximately $6.5 billion (about 8.9 trillion won) with Poland as early as the end of this month. Based on contract amount, this would be the largest scale among individual defense export contracts to date. Due to delays in production preparations by local partner corporations, a larger quantity of direct exports is expected in the second contract. Initially, there were projections that the revenue from the second contract would be lower than the first contract due to local production quantities; however, the situation is conducive for maintaining high revenue at current levels.
Lee Jae-kwang, a researcher at NH Investment & Securities, noted, "Contracts in Slovakia, Romania, and the Middle East are also reportedly in progress," adding that "the pace of negotiations is expected to accelerate after the second contract with Poland."
In Korea, the fourth batch production of K2 tanks is underway. A total of 150 units are scheduled to be produced by 2028, aiming for operational readiness. This project is expected to utilize domestic power packs, offering opportunities for cost reduction and improved maintenance ease.
Lee Dong-hyun, a researcher at Shinhan Investment & Securities, analyzed that "this will serve as a stepping stone to expand exports by eliminating export risks."
Regarding Hyundai Rotem's target stock price, NH Investment & Securities has raised it from 150,000 won to 194,000 won, while Shinhan Investment & Securities has adjusted it from 130,000 won to 200,000 won.