[Edaily Reporter Shin Ha-yeon ] On the 15th, SKSecurities projected that while HYUNDAI ROTEM(064350)’s second-quarter earnings would slightly fall short of market expectations in the short term, the company would continue its medium- to long-term growth trend as its overseas order pipeline—totaling over 30 trillion won—gradually materializes. The firm maintained its “Buy” investment rating and target price of 310,000 won.

Han Seung-han, an analyst at SKSecurities, said, “Consolidated revenue for the second quarter is expected to be 1.619 trillion won, and operating profit 258.1 billion won, slightly below market expectations,” adding, “Although revenue recognition for the EC2 K2GF order in Poland remained stable, the operating profit margin (OPM) is estimated to have declined due to a deterioration in the product mix resulting from an increased share of domestic sales compared to the previous quarter.”

However, he assessed that momentum for overseas orders is actually strengthening. Han explained, “Although uncertainty surrounding the timing of the K2 tank contract has increased due to the war in Iraq and other factors, the likelihood of its adoption—for the purposes of strengthening borders and controlling the Revolutionary Guard—has actually risen.”

They also viewed a contract with Peru as imminent. One analyst noted, “Two K2 tanks and six K808 armored vehicles have already been delivered in advance,” adding, “It is highly likely that a contract worth approximately 3 trillion won will be signed in late July or early August, timed to coincide with the inauguration of Peru’s new government on July 28.”

The analyst continued, “With the likelihood of a contract for Poland’s EC3 program being signed this year following the Peru deal, top-line and profit growth will continue without a revenue gap in 2027–2028,” and added, “Since Romania has also received NATO Quality Assurance Program (AQAP) certification, a contract could be signed in the first half of 2027 following the request for proposal (RFP) in the second half of this year.”

One analyst emphasized, “With all four pipeline projects—totaling over 30 trillion won—scheduled to be secured between the second half of 2026 and 2027, stable revenue and profit growth will continue without a revenue gap, contrary to market concerns,” adding, “The stock is also sufficiently attractively valued at current price levels.”