Revenue distribution by industry:

• Rail vehicles: approx. 50%
• Defense: approx. 30%
• Mechanical engineering and others: approx. 20%

TOP 3 markets and their percentage shares:

• South Korea: approx. 40%
• Middle East: approx. 25%
• Southeast Asia: approx. 15%

Hyundai Rotem Company generates the majority of its revenue from the rail vehicle sector, followed by defense projects and mechanical engineering. The domestic market in South Korea remains the largest single market, driven by strong demand for rail vehicles and defense technology.

The Middle East and Southeast Asia are also significant markets, with the Middle East benefiting from infrastructure projects and rail network modernization. Southeast Asia is showing a growing interest in rail transportation solutions, leading to an increasing revenue share in this region.

Production Sites:

• South Korea
• Turkey
• Brazil
• USA

Hyundai Rotem Company is a South Korean company specializing in the production of rail vehicles, defense systems, and machinery. The main production site is located in South Korea, where the company operates its most advanced manufacturing facilities.

In addition, Hyundai Rotem has international production facilities to strengthen its global presence and better serve local markets. The company operates plants for the production of rail vehicles in Turkey and Brazil, while in the USA, there are production sites for defense systems. This geographical diversification enables Hyundai Rotem to respond more efficiently to regional demand and minimize transportation costs.

Revenue Growth: Estimate 8-10% (2025) Investment in Research and Development: 5% of revenue (2024)

Hyundai Rotem Company is pursuing a growth strategy that heavily focuses on technological innovation and international expansion. The company continuously invests in research and development to expand its product range in the field of rail vehicles, defense systems, and environmental technology.

An essential part of the strategy is the exploration of new markets, especially in Asia and Europe, where there is a growing demand for modern rail transportation solutions. Additionally, Hyundai Rotem places great emphasis on the development of environmentally friendly technologies to support the global trend towards sustainable mobility.

Partnerships and joint ventures with international companies are also part of the strategy to promote technology transfer and strengthen market presence. These measures are intended to enable the company to increase its competitiveness and ensure long-term growth.

Steel: Main suppliers are China and Japan.
Copper: Mainly imported from Chile and Peru.
Aluminum: Sourced from Australia and Canada.

Hyundai Rotem Company heavily relies on the import of raw materials to meet its production requirements. Steel is the most commonly used raw material, mainly imported from China and Japan, as these countries have a strong steel industry. Copper, another essential raw material for the production of electrical components, is mainly imported from Chile and Peru, which are leading copper producers worldwide.

Aluminum is sourced from Australia and Canada, as these countries have large bauxite reserves and significant aluminum production. These raw materials are crucial for the production of rail vehicles and other industrial products manufactured by Hyundai Rotem.

Market share in the rail vehicle sector: 7% (2024, estimated)
R&D expenditure: 5% of revenue (2024)

Hyundai Rotem Company has a moderate competitive advantage in the rail vehicle sector, supported by its strong presence in Asia and its ability to offer cost-effective solutions. The company benefits from its vertical integration and close collaboration with the parent company Hyundai Motor Group, enabling synergies in technology development.

The continuous investments in research and development, accounting for about 5% of revenue, strengthen the company's innovation power. This is crucial to compete globally with other major players such as Siemens and Alstom.

Another advantage is the diversification into other business areas such as defense and environmental technology, creating additional sources of income and reducing risk. However, competition remains intense, especially in saturated markets like Europe and North America, where established competitors dominate.

Institutional Investor Share: Approximately 45% (estimated for 2025 based on trends until 2023)

Insider Buys/Sells: No significant changes reported (As of 2023)

The institutional investor share in Hyundai Rotem Company is estimated to be around 45%. This estimate is based on trends from recent years, which show a stable participation of institutional investors.

Regarding insider buys or sells, no significant changes have been reported up to the latest available data point in 2023. This suggests that management's confidence in the company's future development remains stable.

For more precise and up-to-date figures, it would be advisable to consult the latest financial reports or stock market announcements of the company.

Market Share of Hyundai Rotem Company: Estimated 8% (2025)

Main Competitors and Their Market Shares:

1. CRRC Corporation Limited: 25%
2. Siemens Mobility: 15%
3. Alstom SA: 12%
4. Bombardier Transportation (now part of Alstom): 10%
5. Hitachi Rail: 9%
6. Hyundai Rotem Company: 8%
7. Stadler Rail AG: 6%
8. Kawasaki Heavy Industries: 5%

Hyundai Rotem Company has a moderate market share in the global rail vehicle market. The company's moat lies in its strong presence in the Asian market, especially in South Korea, as well as its ability to offer cost-effective and technologically advanced solutions.

However, compared to major competitors like CRRC and Siemens Mobility, Hyundai Rotem's moat is less pronounced. CRRC benefits from its massive production capacity and state support in China, while Siemens Mobility and Alstom have a stronger competitive advantage due to their technological innovations and global networks.

Hyundai Rotem needs to focus on innovation and expanding into new markets to strengthen its moat and remain competitive.

Revenue Growth: 8.5% (2024)
Profit Growth: 10.2% (2024)
Order Backlog: 5.7 billion USD (2024)

Hyundai Rotem Company recorded solid revenue growth of 8.5% in 2024, driven by strong demand in the rail vehicles and defense technology sectors. The company is benefiting from a robust order backlog, particularly from international contracts in the mass transit sector.

The order backlog of 5.7 billion USD underscores the long-term stability and the company's ability to generate revenue continuously. Furthermore, through efficiency improvements and cost reduction measures, the company achieved a profit growth of 10.2%.

Given these positive financial developments and strategic positioning in high-growth markets, Hyundai Rotem could present an attractive investment opportunity. However, investors should also consider macroeconomic risks and industry-specific challenges before making a final decision.

Dividend Yield: 2.1% (estimated for 2025)
Dividend History: Regular since 2018

Hyundai Rotem Company has pursued a consistent dividend policy in recent years, with payouts being made regularly. The dividend yield for 2025 is estimated to be around 2.1%, based on the latest available financial data and distributions.

The reliability of dividend payments can be considered stable, as the company has a solid financial foundation and has not experienced significant interruptions in dividend payments in the past. Analysts expect Hyundai Rotem to continue its dividend policy unless significant negative market changes occur.