Hyundai Rotem forecast to beat consensus ... third-quarter operating profit of 298 billion won

[Financial News] Daishin Securities said on the 15th that it expects Hyundai Rotem Company’s consolidated third-quarter revenue to reach 2.121 trillion won, significantly exceeding the consensus estimate of 1.7979 trillion won. Its operating profit forecast for the same period is 298 billion won, compared with a consensus estimate of 276.8 billion won. Daishin Securities maintained its “buy” rating on Hyundai Rotem Company and lowered its target price from 240,000 won to 200,000 won.
Daishin Securities researcher Choi Jeong-hwan said, “Revenue remaining from the high-margin Poland EC1 project in the export pipeline is expected to be recognized at a level similar to the second quarter. With increased revenue recognition from Poland EC2 K2GP and a small contribution from EC2 K2PL, revenue and operating profit will increase in absolute terms compared with the second quarter. Export margins are expected to remain at a similar level to the second quarter.”
Choi said, “The order pipeline anticipated for Hyundai Rotem Company includes Poland EC3 and tank procurement projects in Peru, Romania and Iraq. However, if no new tank procurement project is signed between the fourth quarter of this year and the first quarter of 2027, a decline in earnings in 2027 will be unavoidable. Of these, the Poland EC3 project has the clearest visibility. Negotiations on local production and technology transfer are underway, so it is only a matter of time before the contract is signed. Projects in Peru, Romania and Iraq are being delayed by political and economic instability. In particular, projects for Iraq are being delayed across the board by financial problems stemming from a sharp drop in crude oil exports.”
[email protected] Kang Gu-gwi Reporter