Hanwha Ocean announces on the 27th that it is named in the final selection group compressed to twice the size, surpassing foreign defense companies, in the Canada Submarine Program (CPSP) worth up to 60 trillion won. The photo shows the Jangbogo III Batch-2 submarine built by Hanwha Ocean. /Courtesy of Hanwha Ocean

Bumhan Fuel Cell and STX Engine stocks are strong in early trading on the 27th. The buying trend is interpreted as stemming from the news that their client, Hanwha Ocean, has emerged as a final candidate in the Canada Submarine Project (CPSP), which it is bidding for in partnership with HD Hyundai Heavy Industries.

As of 9:18 a.m. on the same day, Bumhan Fuel Cell is trading at 23,750 won, up 5,470 won (29.92%) from the previous trading day. Bumhan Fuel Cell surged immediately after market opening, hitting the daily price limit. STX Engine is up 4.20%.

According to Hanwha Ocean on the same day, the company formed a team with HD Hyundai Heavy Industries to bid for the Canada Submarine Project 'CPSP' and has reached the final candidate stage. They will face fierce competition with ThyssenKrupp Marine Systems from Germany. As a result, Hanwha Ocean and HD Hyundai Heavy Industries have also risen by 3.62% and 3.21%, respectively, at the same time.

As expectations for receiving this project, estimated to be worth up to 60 trillion won, grow, investor interest in component suppliers is also increasing. Bumhan Fuel Cell is noted for producing Approval In Principle (AIP) modules, while STX Engine is highlighted for producing diesel gensets (engine + generator) as relevant beneficiaries.

Kang Kyung-tae, a researcher at Korea Investment & Securities, noted, 'If the one team wins this project, the supply chain for submarine manufacturing will also benefit,' adding, 'Reflecting expectations for the final business selection, stock prices across the supply chain are expected to rise.'

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