[EQUITIES] Hyundai Rotem gains momentum with strong orders book

[THE INVESTOR] Shares of Hyundai Rotem, South Korea’s leading railway vehicle-maker, are expected to move upward as its export order bookings pick up, according to a local brokerage house on Aug. 19.

“Hyundai Rotem has won new orders worth 2.35 trillion won (US$2.1 billion) this year so far,” said Jung Dong-ik, an analyst at Hyundai Securities.

Including small projects that were not publicly disclosed, the amount is likely to exceed 2.5 trillion won, he said.

The latest deals it clinched include a 1.1 trillion won order from the Ministry of Transport and Infrastructure of New South Wales to supply 512 double-deck passenger railcars.

The train-making unit of Hyundai Motor Group was also short-listed for Egypt’s 1 trillion won project to supply 510 electric locomotives to Cairo’s metro Line 3.

Hyundai Securities retained the stock’s target price at 26,000 won and a buy rating.

By Park Han-na (hnpark@heraldcorp.com)