Hanwha Systems Gains More Than 7% on Expectations for Integrated Air-Defense Network in UAE [Stock NOW]

[Financial News] Hanwha Systems gained strength early in the session following news of cooperation with the United Arab Emirates (UAE) defense company EDGE Group to establish an integrated air-defense network.
As of 9:36 a.m. on the 17th, Hanwha Systems was trading at 74,300 won, up 5,500 won, or 7.99%, from the previous trading day, according to the Korea Exchange.
Hanwha Systems announced that it had signed a memorandum of understanding on key terms for an integrated air-defense network project with local defense company EDGE Group in Abu Dhabi, UAE, on the 15th local time.
The two sides plan to link long- and medium-range surface-to-air guided weapon systems with counter-drone systems and short-range air-defense systems. After obtaining government approval and completing consultations, they will also consider establishing a local joint venture (JV) and developing plans for production and business operations.
Securities analysts also highlighted the company’s growth potential amid rising demand for air-defense systems in the Middle East. On the 14th, IBK Investment & Securities forecast that revenue recognition from existing export projects, including Cheongung-II in the UAE and Saudi Arabia, would drive earnings growth. It newly issued a “Buy” rating and set a target price of 90,000 won.
Kim Tae-hyun, a researcher at IBK Investment & Securities, stated, "As the establishment of multilayered air-defense systems expands, demand for air-defense systems, including the M-SAM medium-range surface-to-air missile system, is increasing. Accordingly, demand for radars, which are core sensors, is also expected to expand structurally." 
[email protected] Bae Han-geul Reporter