Hyundai Rotem: 2Q26 earnings to be a beat with no slowdown in Poland production and FX; order updates are key for sustainable share price

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Hyundai Rotem: 2Q26 earnings to be a beat with no slowdown in Poland production and FX; order updates are key for sustainable share price

J P M O R G A N Asia Pacific Equity Research

02 July 2026

Hyundai Rotem

2Q26 earnings to be a beat with no slowdown in Poland Overweight

production and FX; order updates are key for 064350.KS, 064350 KS

sustainable share price Price (02 Jul 26):W197,500

Price Target (Jun-27):W300,000

We expect Hyundai Rotem’s 2Q26 OP to come in 13% ahead of Street estimates Korea Defense

ACat W326B. The key 2Q26 earnings driver should be Poland's K2 EC2 sales, with Simon Han

no slowdown in production and a robust FX backdrop, which leaves us to believe (82-2) 758-5711

defense export margins will see expansion q-q. The profitable Poland K2 EC1 simon.x.han@jpmorgan.com

related sales (ammunition and tech transfer) could be a swing factor, which we are J.P.BranchMorgan Securities (Far East) Limited, Seoul

conservatively penciling in for now. Hyundai Rotem’s share price has recently

Jeongsuk Woo

found strength (shares up 15% in the past 5 days vs KOSPI -9% ) with news (82-2) 758 5703

headlines on the start of Poland EC2 deliveries. We believe this earlier-than- jeongsuk.woo@jpmorgan.com

scheduled delivery proves the company’s fast execution and short- to mid-term J.P. Morgan Securities (Far East) Limited, Seoul

Branch

fundamentals – however, we also need more clarity on the timing and detailed

progress of order pipelines to see sustainable share price moves. Accordingly, we Karen Li, CFA

(852) 2800-8589

revise up our 2026E/2027E OP estimates by 3%/9%, but maintain our PT of karen.yy.li@jpmorgan.com

W300K after pushing our PT end date to Jun-27 (from Dec-26 previously). We do J.P. Morgan Securities (Asia Pacific) Limited/ J.P.