Shares of Hanwha Ocean are showing strong performance following the announcement that the company has been selected as the preferred bidder for the detailed design and construction of the Korean next-generation destroyer (KDDX).
As of 10:04 a.m. on July 2, Hanwha Ocean's stock was trading at 106,800 won, up 3,500 won (3.39%) from the previous trading day. During the session, the stock peaked at 115,900 won, marking a 12.20% increase.
The rise in stock price is attributed to the Defense Acquisition Program Administration's announcement of Hanwha Ocean's selection as the preferred bidder for the KDDX project. The company disclosed this information before the market opened.
The KDDX project is a major defense initiative to design and build six 6,000-ton next-generation destroyers using domestic technology. Starting with the lead ship's construction, the project is expected to extend to subsequent ships, making it a significant venture for the domestic shipbuilding and defense industries. This selection is anticipated to enhance Hanwha Ocean's competitiveness in the naval sector and increase expectations for future defense contracts.
However, this selection does not signify a final contract. Hanwha Ocean stated that the contract amount and duration will be finalized through discussions between the parties involved, and they plan to re-disclose relevant information once the contract is signed. The company noted that "details may change during the project process."
* This article has been translated by AI.
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