[Featured Stock] 'Defense Leader' Hanwha Aerospace Hits All-Time High in 7 Months

Hanwha Aerospace recorded its highest intraday price in seven months. The stock surged immediately after signing a win-win cooperation agreement in the aerospace manufacturing industry.

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As of 2:33 PM on the 14th, Hanwha Aerospace was trading at 152,000 KRW, up 11.84% (16,100 KRW) from the previous day. This surpassed the all-time high of 151,000 KRW recorded on July 27, 2023. The stock, which opened flat at 135,900 KRW, gradually trended upward in the morning before surging in the afternoon.

On the same day, Hanwha Aerospace, Korea Aerospace Industries, and Gyeongsangnam-do held a joint declaration for the expansion of win-win cooperation in the aerospace manufacturing industry with the Ministry of Employment and Labor at the Hanwha Group headquarters. Since last year, the government has been promoting the spread of win-win cooperation models to improve the dual structure of the labor market. Win-win cooperation between primary and subcontractors has been established in shipbuilding, petrochemicals, and the automotive industry, with aerospace manufacturing being the fourth sector.

In particular, since major companies and their partners in the aerospace manufacturing industry are concentrated in Gyeongsangnam-do, this is the first regional-level win-win model operated by the collaboration of local governments and companies with support from the central government. This is also why Gyeongsangnam-do participated as a party to the agreement. Through this agreement, it is expected that a labor market for the aerospace manufacturing industry in the Gyeongnam region will be created, including the influx and training of young and skilled workers, improvement of working conditions and welfare for partner company employees, and creation of quality jobs.

Hanwha Aerospace is a company at the forefront of 'K-Defense.' Many securities firms recommend it as a top pick in the defense sector. Its core product, the K9 self-propelled howitzer, holds the number one position with over 50% market share worldwide. Thanks to strong sales of the K9, Hanwha Aerospace's order backlog has more than doubled over six years, from 22.8 trillion KRW in 2017 to 53.3 trillion KRW as of the third quarter of 2023. Although domestic supply of the K9 has ended, exports have entered a stable trajectory, and stable revenue growth for Hanwha Aerospace is expected through 2030.

On the 13th, Hanwha Aerospace also signed a tripartite memorandum of understanding (MOU) for defense cooperation with the Saudi Ministry of National Defense. The company plans to participate in the ministry’s mid- to long-term acquisition plans across various fields, from armored vehicles and ground weapon systems to surveillance and reconnaissance systems using robots and satellites. Saudi Arabia is a 'big spender,' having spent 75 billion USD (approximately 100 trillion KRW) on military expenses in 2022. In terms of military expenditure, it ranks fifth globally after the United States, China, Russia, and India.

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