[Edaily Reporter Park Jung-Soo ] HANWHA AEROSPACE(012450)is trading higher. This is believed to be driven by investor sentiment following a securities firm’s analysis that the entry of the K9 self-propelled howitzer into the U.S. market carries significance beyond that of a single order.
According to MP Doctor on the 24th, as of 9:33 a.m., HANWHA AEROSPACE is trading at 1,114,000 won, up 2.67% (29,000 won) from the previous trading day.
On the same day, HANWHA INVESTMENT & SECURITIES raised its target price for HANWHA AEROSPACE from 1.67 million won to 1.83 million won.
Previously, Hanwha Defense USA secured a contract for the U.S. Army’s MTC prototype project with its K9MH system. An initial order for six prototypes was placed, with an option to order an additional 12 units over the next four years. The cumulative contract value, including all options, amounts to approximately $260 million (about 371.5 billion won).
DS Investment & Securities estimated that the total scope of this project, including mass production and maintenance, repair, and overhaul (MRO), could reach approximately 500 units, valued at 10 trillion won. The firm also analyzed that additional business opportunities could be discussed in the future, such as the supply of propellant charges and wheeled model packages to be produced in the United States.
The firm particularly highlighted the symbolic significance of this contract award, as it signifies that a South Korean-made complete weapons system has entered the test and evaluation phase in the United States, the world’s largest defense market. Hanwha Defense USA was selected as the sole contractor after competing against Rheinmetall, KNDS·Leonardo DRS, and Elbit.
DS Investment & Securities predicted that since the K9MH was selected over KNDS’s “César”—currently regarded as the top wheeled self-propelled howitzer in the export market based on cumulative order volume—it will serve as an important reference point for future global wheeled self-propelled howitzer projects.
In particular, the firm noted that this contract is significant because it secures a foothold for expanding the business scope across the entire U.S. artillery system—starting with the K9MH—to include ammunition supply systems, propellant charges, MRO, long-range gun barrels, and tracked self-propelled howitzers.
Furthermore, HANWHA AEROSPACE has signed a joint research and development agreement—separate from the MTC program—to integrate a 155mm 58-caliber gun designed by the U.S. government into the K9 series platform. DS Investment & Securities assessed that if this R&D proceeds successfully, the U.S. might consider replacing its currently operational M109 self-propelled howitzers with the K9A2.