Corporate Logo(source: hyundai-rotem.co.kr)
Defense stocks are seeing a broad upward trend, fueled by expectations of increased defense spending in Europe. In particular, Hyundai Rotem(064350) has been hitting new record highs.
As of 9:45 AM on March 13, Hyundai Rotem was trading at 103,100 won, up 9% from the previous session. The stock briefly surged to 103,700 won, setting a new 52-week high.
Korea Aerospace Industries(047810) and SNT Dynamics(003570) are both up more than 5%, while other companies such as MNC Solutions(484870), Hanwha Systems(272210), Poongsan(103140), and LIG Nex1(079550) are also seeing gains.
Jang Nam-hyun, an analyst at Korea Investment & Securities, commented on Hyundai Rotem, stating, "With the United States' increasing focus on 'America First' policies, European nations are ramping up defense spending to strengthen their national defense. Hyundai Rotem is well-positioned to benefit from both a reduced competitive landscape in non-European regions and increased demand in Europe, leading to market expansion."
He also noted that with the domestic production of the K2 tank transmission now completed, marketing in the Middle East will intensify starting this year. The Middle Eastern tank export market, considering the replacement demand in Saudi Arabia and the UAE, is estimated to be worth over 18 trillion won, and with competition easing, Hyundai Rotem is expected to seize new opportunities to enter this market.
*[KOSPI]Hyundai Rotem(064350) is a manufacturer of railway vehicles and defense products, conducting rail solutions, defense solutions, and eco-plant businesses. Market capitalization is 10 trillion 292.1 billion won(as of March 12, 2025, closing price).
*[KOSPI]Korea Aerospace Industries(047810) engages in the aerospace industry, including the development and production of military aircraft, civil aircraft, and helicopters, as well as MRO services(Maintenance, Repair, and Overhaul) for operated aircraft. Market capitalization is 7.993 trillion won(as of March 12, 2025, closing price).
Corporate Logo(source: hyundai-rotem.co.kr)
Defense stocks are seeing a broad upward trend, fueled by expectations of increased defense spending in Europe. In particular, Hyundai Rotem(064350) has been hitting new record highs.
As of 9:45 AM on March 13, Hyundai Rotem was trading at 103,100 won, up 9% from the previous session. The stock briefly surged to 103,700 won, setting a new 52-week high.
Korea Aerospace Industries(047810) and SNT Dynamics(003570) are both up more than 5%, while other companies such as MNC Solutions(484870), Hanwha Systems(272210), Poongsan(103140), and LIG Nex1(079550) are also seeing gains.
Jang Nam-hyun, an analyst at Korea Investment & Securities, commented on Hyundai Rotem, stating, "With the United States' increasing focus on 'America First' policies, European nations are ramping up defense spending to strengthen their national defense. Hyundai Rotem is well-positioned to benefit from both a reduced competitive landscape in non-European regions and increased demand in Europe, leading to market expansion."
He also noted that with the domestic production of the K2 tank transmission now completed, marketing in the Middle East will intensify starting this year. The Middle Eastern tank export market, considering the replacement demand in Saudi Arabia and the UAE, is estimated to be worth over 18 trillion won, and with competition easing, Hyundai Rotem is expected to seize new opportunities to enter this market.
*[KOSPI]Hyundai Rotem(064350) is a manufacturer of railway vehicles and defense products, conducting rail solutions, defense solutions, and eco-plant businesses. Market capitalization is 10 trillion 292.1 billion won(as of March 12, 2025, closing price).
*[KOSPI]Korea Aerospace Industries(047810) engages in the aerospace industry, including the development and production of military aircraft, civil aircraft, and helicopters, as well as MRO services(Maintenance, Repair, and Overhaul) for operated aircraft. Market capitalization is 7.993 trillion won(as of March 12, 2025, closing price).