[Market Focus] Samhyun Joins Global Defense Stock Rally...Exclusive Supply of Core Components for Next-Generation Weapon Systems

Samhyun is showing strong performance. The news that the company has begun initial mass production of core components used in land, sea, and air weapon systems for future battlefield readiness appears to be influencing its stock price. Samhyun has decided to supply these components exclusively to a major domestic defense company, referred to as Company H.

As of 2:30 p.m. on May 7, Samhyun was trading at 14,990 won, up 13.65% from the previous trading day.

By securing exclusive supply of core components for electro-optical devices and starting initial mass production, Samhyun is simultaneously advancing the localization of key technologies for comprehensive weapon systems across the Army, Navy, and Air Force, and strengthening its capabilities to respond to future battlefields. The components entering mass production are products that can only be developed by technologically advanced countries. Through this, Samhyun is seen as establishing a strategic foundation for the self-reliance of defense technology and for entering the global market.

The industry expects this initial mass production to serve as a catalyst for the localization of core components in next-generation weapon systems and to strengthen Samhyun's position in the precision surveillance and reconnaissance sector. There are a total of three core items being produced in this initial phase, each to be applied to next-generation strategic weapon systems for the Army, Navy, and Air Force.

For the Air Force, the components include motors and controllers for electro-optical equipment to be mounted on the Medium-Altitude Unmanned Aerial Vehicle (MUAV), which are key parts for aerial reconnaissance. The MUAV is a high-performance weapon system capable of precision reconnaissance of strategic targets at altitudes of 10 to 12 kilometers, providing real-time imagery of key enemy targets and playing a central role in surveillance of North Korea and early response operations.

For the Navy, Samhyun is supplying core components for maritime electro-optical equipment to be used on the Yoon Youngha-class guided missile patrol-boat (PKG). This equipment carries out precision surveillance and target tracking missions at sea, and Samhyun is contributing to enhancing the Navy's precision surveillance capabilities and the localization level of its weapon systems.

For the Army, Samhyun is initially producing electro-optical tracking systems (EOTS) and target acquisition and designation systems (TADS) to be applied to laser air defense weapon systems. These next-generation systems neutralize small drones, multicopters, and balloon threats with high-power lasers, offering superior operational efficiency and cost-effectiveness compared to existing interceptor weapons, and are drawing attention as a core defense system for future ground battlefields.

According to a global market research agency, the global military electro-optical and infrared (EO/IR) systems market is expected to grow from approximately $8.3 billion in 2023 to about $10.9 billion in 2028. The military laser weapon market is also projected to expand to around $1.3 billion by 2030. Samhyun expects that expanding its business in the electro-optical sector will drive its mid- to long-term growth.