Hanwha Ocean exhibited a strong upward trend on the 10th, breaching the 110,000 KRW mark. On this day, Hanwha Ocean closed trading at 112,200 KRW, up 7.83% from the previous trading day. During the session, it rose to as high as 110,600 KRW, heightening expectations for a new 52-week high. The trading volume exceeded 1.65 million shares, and the trading value recorded around 177.2 billion KRW, reflecting intense market interest. Its market capitalization also expanded to approximately 33.7 trillion KRW.

[Expectations for Mega Defense Project Orders] The recent strength in Hanwha Ocean's stock price is rooted in expectations for major defense projects. The industry is closely watching the 'Korean Destroyer Next Generation (KDDX) project' and the 'Canadian Patrol Submarine Project (CPSP),' with results for both anticipated to be announced this month, as key variables. Both projects are evaluated as mega-projects ranging from several trillion to tens of trillions of KRW. In particular, the KDDX project, with a total budget of 7 trillion KRW, is a next-generation destroyer project that is the primary focus of the domestic shipbuilding and defense industries. The Canadian submarine project is also estimated to be worth tens of trillions of KRW when including long-term maintenance, and it is considered a crucial testing ground to gauge Hanwha Ocean's competitiveness in the overseas defense market. Hanwha Ocean possesses solid competitiveness not only in shipbuilding but also in the special vessel sector, including submarines and destroyers. Recently, the company strengthened its order-taking activities by prominently featuring the KSS-III submarine at the Canadian defense exhibition 'CANSEC 2026,' actively responding to the expansion of the global defense market.

[Heightened Middle East Tensions and Geopolitical Risks] Rising military tensions in the Middle East are also cited as a factor stimulating investment sentiment in defense stocks. With recent renewed concerns over a clash between the United States and Iran, global security uncertainties are expanding, leading to increased investor interest in domestic defense-related stocks across the board. The market analyzes that as geopolitical risks grow, expectations for defense orders tend to be highlighted simultaneously.

[Key Variables and Outlook for Future Stock Price] Within the securities industry, the selection of the preferred bidder for the KDDX and the success in winning the Canadian submarine project are cited as the key variables for Hanwha Ocean's future stock price. At the same time, the level of military tension between the U.S. and Iran, changes in the international political landscape, and the broader trend of expanding global defense investments are also expected to impact the stock price. The market anticipates that if Hanwha Ocean successfully settles in the 110,000 KRW range, there could be room for further upside, though it remains cautious about the potential for increased volatility following the short-term surge.

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