Hyundai Rotem Company (064350) Earnings: 2Q Operating Profit Surpasses Estimates with 88% Net Growth

Hyundai Rotem Company on Smartkarma

Analysts on Smartkarma are bullish on Hyundai Rotem Company, with a focus on its impressive growth in defense exports. Douglas Kim highlights that Hyundai Rotem’s defense exports as a percentage of total sales have shown a significant increase from 0% in 2021 to 36.4% in 2024, indicating a strong uptrend. This surge in defense exports is supported by the company’s aggressive new orders for defense and railway systems, with an impressive order backlog of 14.1 trillion won at the end of 2024.

In addition, the MV Global Defense Industry Index is set to include Hyundai Rotem among its constituents, as reported by Brian Freitas and Travis Lundy. The index rebalance will see Hyundai Rotem being added alongside other companies, reflecting positive sentiment towards the company’s growth prospects and market performance. These analysts anticipate significant flows and turnover associated with Hyundai Rotem’s inclusion in the index, suggesting a promising outlook for the company in the defense industry.

A look at Hyundai Rotem Company Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Hyundai Rotem Company Ltd., a manufacturer of railroad equipment and defense vehicles, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a strong Growth score of 5 and Momentum score of 5, the company demonstrates robust potential for expansion and market performance. Its Resilience score of 4 also indicates a solid ability to weather economic uncertainties. Although the Value and Dividend scores are more moderate at 2 each, the overall outlook for Hyundai Rotem suggests positive growth opportunities combined with the ability to navigate challenges effectively.

Hyundai Rotem Company Ltd. is a global player in the production of high-speed trains, light rail vehicles, locomotives, passenger coaches, main battle tanks, armored recovery vehicles, and related defense equipment. The company’s impressive Growth and Momentum scores, along with its strong Resilience score, signal a promising future for its business operations. While the Value and Dividend scores are not as high, Hyundai Rotem’s diversified product line and international presence position it well for long-term success in the evolving transportation and defense sectors.

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