[Stock in Focus] Spear Hits Upper Price Limit on News of Supply Contract with Musk's SpaceX

Spear hit the upper price limit immediately after the market opened.

At 9:03 a.m. on the 1st, Spear surged by 30% compared to the previous day, reaching the upper price limit of 14,170 won. The company also set a new 52-week high.

The catalyst for investor sentiment was the announcement of a long-term supply contract with SpaceX. After the market closed the previous day, Spear announced that it had signed a 10-year long-term contract to supply special alloys to SpaceX, the space company led by Elon Musk, CEO of Tesla.

The contract amount is 77.2 billion won, which is approximately 2,967% of Spear's recent sales of 2.56 billion won. The contract period runs from July 31, 2025, to December 31, 2035, and includes an option to extend the contract for up to three years after expiration.

Jung Jisoo, a researcher at Meritz Securities, explained, "The expected purchase amount by the end of the contract is about 1 billion dollars. The 55.48 million dollars (77.2 billion won) order received the previous day is estimated to correspond to six months' worth of the initially forecast demand. The reason for unusually disclosing the contract partner is interpreted as a measure to strengthen the cooperative relationship between SpaceX and Spear and to instill trust in the market."