Hanwha Systems is experiencing a significant surge in its stock price following news of its participation in the United Arab Emirates (UAE) integrated air defense network project.
As of 10:50 a.m. on September 17, the Korea Exchange reported that Hanwha Systems shares had risen by 7,400 won (10.67%) to 76,100 won compared to the previous trading day.
The sharp increase in stock price is attributed to the announcement of Hanwha Systems' formal engagement in the Middle East air defense project. On September 15 (local time), the company signed a key terms agreement with the local defense firm EDGE Group in Abu Dhabi for the integrated air defense network project.
Under this agreement, both parties will pursue the export and joint development of long-range surface-to-air missile systems (L-SAM), counter-drone systems, and the mid-range surface-to-air missile system 'Cheongung-II.' They will also explore the establishment of a local joint venture (JV) and production and operational plans, pending government approvals and consultations.
Analysts are noting the growth potential due to the increasing demand for air defense systems in the Middle East. IBK Investment & Securities projected on September 14 that revenue from existing export projects, including Cheongung-II to the UAE and Saudi Arabia, will drive performance growth, setting a new target price of 90,000 won.
Additionally, Hanwha Systems reported a 218.8% increase in consolidated operating profit for the second quarter of this year, reaching 103.7 billion won compared to the same period last year. Revenue also rose by 45.5% to 1.1176 trillion won during the same timeframe. Compared to the previous quarter, operating profit increased by 202.4%, and revenue grew by 38.5%.
As of 10:50 a.m. on September 17, the Korea Exchange reported that Hanwha Systems shares had risen by 7,400 won (10.67%) to 76,100 won compared to the previous trading day.
The sharp increase in stock price is attributed to the announcement of Hanwha Systems' formal engagement in the Middle East air defense project. On September 15 (local time), the company signed a key terms agreement with the local defense firm EDGE Group in Abu Dhabi for the integrated air defense network project.
Under this agreement, both parties will pursue the export and joint development of long-range surface-to-air missile systems (L-SAM), counter-drone systems, and the mid-range surface-to-air missile system 'Cheongung-II.' They will also explore the establishment of a local joint venture (JV) and production and operational plans, pending government approvals and consultations.
Analysts are noting the growth potential due to the increasing demand for air defense systems in the Middle East. IBK Investment & Securities projected on September 14 that revenue from existing export projects, including Cheongung-II to the UAE and Saudi Arabia, will drive performance growth, setting a new target price of 90,000 won.
Additionally, Hanwha Systems reported a 218.8% increase in consolidated operating profit for the second quarter of this year, reaching 103.7 billion won compared to the same period last year. Revenue also rose by 45.5% to 1.1176 trillion won during the same timeframe. Compared to the previous quarter, operating profit increased by 202.4%, and revenue grew by 38.5%.
* This article has been translated by AI.
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