Hanwha Ocean is experiencing a surge in its stock price following reports that it has been effectively selected as the contractor for the detailed design and lead ship construction of the next-generation Korean destroyer (KDDX) project, valued at 7.8 trillion won. The Defense Acquisition Program Administration (DAPA) reportedly scored Hanwha Ocean slightly higher than its competitor, HD Hyundai Heavy Industries, boosting expectations for significant defense contracts.
As of 10:56 a.m. on June 12, Hanwha Ocean's shares rose by 9,100 won (8.71%) to 113,600 won. At one point during trading, the stock peaked at 117,400 won.
The increase in stock price is attributed to the recent announcement of DAPA's evaluation results for the KDDX detailed design and lead ship construction project.
According to industry sources, DAPA has completed its evaluation of the proposals for the KDDX project and has notified both companies of the results. Hanwha Ocean is believed to have received a higher score than HD Hyundai Heavy Industries, significantly increasing its chances of being selected as the contractor.
The KDDX project involves the construction of six 6,000-ton next-generation destroyers using domestic technology, with a total project cost of approximately 7.8 trillion won. The detailed design and lead ship construction portion of the bid alone amounts to 882.1 billion won, and industry experts are paying close attention to the potential for follow-on orders for additional ships.
Reports indicate that security scores played a crucial role in the evaluation outcome. While HD Hyundai Heavy Industries outperformed Hanwha Ocean in the technical capability assessment, security penalties related to past military secrets leaks reportedly reversed the final rankings.
The final scores were Hanwha Ocean at 93.9542 points and HD Hyundai Heavy Industries at 93.3675 points, a narrow margin of just 0.5867 points.
Market analysts note that if Hanwha Ocean is confirmed as the final preferred bidder, it will secure a leading position in the domestic next-generation destroyer project. Given that the KDDX project is a large-scale initiative expected to span several years, there is growing optimism regarding future performance and order backlog expansion.
A representative from Hanwha Ocean stated, "If we are ultimately selected as the preferred bidder, we will work closely with DAPA to make up for the delayed project schedule and fully mobilize our ship design and construction capabilities."
* This article has been translated by AI.
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