Hanwha Aerospace shares were strong early on the 2nd. Buying is seen as piling in on news that implementation will begin in earnest for the third export contract of the domestically made multiple rocket launcher "Cheonmu" with the Polish government and local corporations WB Electronics.
As of 9:32 a.m. that day, Hanwha Aerospace was trading at 1,431,000 won, up 98,000 won (7.35%) from the previous session.
Hanwha Aerospace disclosed that after the regular session closed the previous day, it signed a license and parts supply contract with Hanwha-WB Advanced System (HWB), a joint venture established through a joint investment with Polish defense corporations WB Electronics.
The license contract is worth 341 billion won, and the parts supply contract is worth 2.024 trillion won. Both contracts run until Oct. 30, 2033. Hanwha Aerospace signed a third execution contract worth 5.6 trillion won at the end of December last year with the Polish Armament Agency to supply Cheonmu guided missiles with a range of 80 kilometers.
There is also analysis that the security gap expected to arise amid hopes for an end to the war between the United States and Iran is stoking investor sentiment for defense stocks.
Jeong Hae-chang, an analyst at Daishin Securities, said, "Iran carried out the use of force by conducting widespread bombardment on Gulf countries that sought to avoid being drawn into war with the United States and Israel," and added, "If the United States declares an end to the war without particular measures in this situation, it would create an environment in which Gulf countries in the Middle East see a greater need to bolster defense capabilities."