[Market Focus] Daesung Hi-Tech Surges on News of 22.7 Billion KRW Defense Parts Order

Daesung Hi-Tech is showing strong performance. This appears to be influenced by news of a defense parts supply contract worth approximately 22.7 billion KRW.

As of 2:13 p.m. on December 8, Daesung Hi-Tech was trading at 4,790 KRW, up 985 KRW (25.89%) from the previous trading day.

On this day, Daesung Hi-Tech announced that it had signed a defense parts supply contract worth approximately 22.7 billion KRW with a European defense customer.

This contract amounts to about 24.4% of the company's recent sales. The counterparty is Elmet International SRL. The contract period is from January 2026 to October 2027, with phased supply scheduled over 1 year and 10 months.

The company expects the global defense industry to enter a growth phase over the next 3 to 5 years. As weapon inventories have been significantly depleted in regions such as the Middle East and Ukraine, major defense companies are working to replenish their stockpiles, which is expected to benefit Daesung Hi-Tech.

The products Daesung Hi-Tech has been contracted to supply are next-generation missile parts that meet higher precision and fragmentation simulation standards compared to existing missile components. This aligns with recent global defense trends, such as minimizing civilian casualties and enhancing precision strike capabilities.

The company possesses micrometer (μm)-level processing capabilities required for high-difficulty parts such as robots, missiles, and drones. Based on its precision cutting and machining technology, Daesung Hi-Tech delivers superior performance in terms of tolerance, durability, and weight reduction compared to conventional forging-based parts.

A company representative emphasized, "Based on our ultra-precision machining technology, we will not only fulfill follow-up orders for this project but also achieve additional results in expandable fields such as robotics, drones, and aerospace."