Hanwha Systems' stock surged in early trading after news broke that the company will participate in the construction of an integrated air defense network in the United Arab Emirates (UAE).
As of 10:50 a.m. on September 17, the Korea Exchange reported that Hanwha Systems shares rose 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' involvement in the Middle East air defense project. On September 15 (local time), the company signed a key agreement with the local defense firm EDGE Group in Abu Dhabi regarding 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 and production and operational plans, pending government approvals and consultations.
Analysts are optimistic about the growth potential stemming from increased 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 rose 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' involvement in the Middle East air defense project. On September 15 (local time), the company signed a key agreement with the local defense firm EDGE Group in Abu Dhabi regarding 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 and production and operational plans, pending government approvals and consultations.
Analysts are optimistic about the growth potential stemming from increased 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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