Shares of Hanwha Ocean have risen more than 11% in early trading as anticipation builds for the announcement of the Canadian Submarine Project (CPSP) contractor selection.
According to the Korea Exchange, as of 9:42 a.m. on July 6, Hanwha Ocean's stock was trading at 118,900 won, up 12,000 won (11.23%) from the previous trading day. The stock opened at 112,200 won and peaked at 123,000 won during the session.
The surge in stock price is attributed to expectations that the Canadian government will announce the CPSP contractor selection results as early as this evening or early tomorrow morning.
The Globe and Mail, a prominent Canadian daily, reported, citing multiple government sources, that Canadian Prime Minister Mark Carney is expected to officially announce the CPSP contractor on July 6 local time. The CPSP aims to replace aging Victoria-class submarines by introducing up to 12 diesel submarines, with the total project estimated to be worth up to 60 trillion won.
Hanwha Ocean is competing with Germany's ThyssenKrupp Marine Systems (TKMS) for this project. Market analysts believe that the outcome of the contract will be a significant factor influencing Hanwha Ocean's stock performance in the future.
In a report released today, Kim Yong-min, a researcher at Yuanta Securities, stated, "In July, Hanwha Ocean's stock price will depend more on the success of the Canadian patrol submarine project, which launched for the first time in 2023, than on earnings announcements," maintaining a 'buy' rating with a target price of 179,000 won.
* This article has been translated by AI.
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