[Market Focus] Hanwha Systems Hits Record High on Hopes of Collaboration with U.S. Defense Firm

Hanwha Systems is showing strong performance in early trading.

At 9:05 a.m. on June 16, Hanwha Systems was trading at 59,500 won, up 9.38% (5,100 won) from the previous day. During intraday trading, the stock surged to 59,600 won, setting a new 52-week high.

Investor sentiment appears to have been boosted by reports that Hanwha Group will collaborate with U.S. defense contractor Northrop Grumman to develop a multi-layered air defense system. Northrop Grumman possesses the technology for the Integrated Battle Command System (IBCS), which integrates weapon systems to counter missile threats. Within Hanwha Group, Hanwha Systems is responsible for developing multi-function radar systems.

There are also expectations that the escalation of conflicts in the Middle East will serve as a short-term catalyst for domestic defense stocks. Jung Dongik, a researcher at KB Securities, stated, "After Israel carried out an airstrike on Iranian nuclear facilities on June 13 (local time), domestic defense stocks such as LIG Nex1 (14.35%), Korea Aerospace Industries (7.96%), MNC Solution (7.43%), Hyundai Rotem (3.95%), and Hanwha Systems (2.64%) surged. The possibility of restrictions on Israeli defense exports could present short-term opportunities for Korean companies."