Hyundai Rotem's stock price rose in early trading on the 11th, with expectations of record performance in the second quarter this year due to the second contract for K2 tanks with Poland.
As of 9:19 a.m. that day, Hyundai Rotem was trading at 172,000 won, up 3,700 won (2.20%) from the previous trading day. During the trading session, the price rose to 182,500 won, setting a new one-year high for the second consecutive day.
Hyundai Rotem is expected to sign a second export contract for K2 tanks with Poland worth approximately $6.5 billion (about 8.9 trillion won) as early as the end of this month. Based on the contract amount, this will be the largest individual defense export contract to date.
Additionally, contracts are underway with countries in Eastern Europe and the Middle East, and strong performance is anticipated for the second quarter this year. Consequently, securities firms have collectively raised their target prices for Hyundai Rotem. NH Investment & Securities adjusted its target price from 150,000 won to 194,000 won, while Shinhan Investment Corp. raised its price target from 130,000 won to 200,000 won.
Lee Jae-gwang, a researcher at NH Investment & Securities, noted, “Operating profit in the second quarter is expected to reach an all-time high,” and added, “With contracts also progressing in Slovakia, Romania, and the Middle East, the pace of negotiations is likely to quicken following the second contract with Poland.”