Poland Tank Supply Project Second Execution Contract Negotiation Completed" Hyundai Rotem Target Price↑-Hanwha

[Financial News] Hanwha Investment & Securities stated that "Negotiations related to the second execution contract for the Poland K2 tank supply project have finally been completed," and raised the target price of Hyundai Rotem from 1.7 million won to 2.4 million won.
Baeseongjo, a researcher at Hanwha Investment & Securities, explained on the 14th, "The contract amount for the Poland K2 supply project amounts to 6.5 billion dollars (approximately 9 trillion won), which is the largest in the history of single defense exports."
It was estimated that Hyundai Rotem's performance in the second quarter would meet market expectations (consensus). The expected performance for the second quarter of this year is sales of 1.3346 trillion won and an operating profit of 238.4 billion won, an increase of 21.9% and 111.5% respectively compared to the same period last year. The expected sales for the whole year are 5.373 trillion won, and the operating profit is 984 billion won, an increase of 22.8% and 115.4% respectively compared to the same period last year.
Researcher Bae stated, "The inclusion of K2PL volume in the second contract is significant because, first, a local production base in Poland has been established, increasing the likelihood of fulfilling the follow-up execution contract for the remaining 640 units of the basic contract of 1,000 units," and "second, it allows for the sale of the K2PL model to neighboring countries such as Slovakia."
He continued, "Europe is already preparing for the next war," and "there is a need to pay attention to the possibility of expanding tank export regions beyond the follow-up execution contract in Poland."   

koreanbae@fnnews.com Bae Hangul Reporter