Hanwha Ocean surges in the 10% range on localization of submarine horizontal launch system [Stock NOW]

[Financial News] Hanwha Ocean is surging in the 10% range on news that it has succeeded in localizing a horizontal launch system, a key piece of submarine equipment.
As of 9:58 a.m. on the 2nd, Hanwha Ocean was trading at 55,100 won, up 5,100 won (10.20%) from the previous trading day. The stock opened at 50,000 won, fell as low as 48,900 won intraday, and then climbed to 55,100 won.
Hanwha Ocean said the previous day that it had independently developed a submarine “water-ram-type horizontal launch system” using entirely domestic technology, in collaboration with the Agency for Defense Development (ADD) over about 10 years. The news is believed to have boosted investor sentiment. A horizontal launch system is a key piece of equipment that pushes major weapons such as torpedoes from inside a submarine into the sea for launch. The water-ram method uses water pressure to propel a projectile, precisely controlling the force generated during launch so that weapons can be fired steadily at a set speed.
Hanwha Ocean said it had also secured a multi-stage safety system to prevent equipment malfunctions, structural integrity capable of withstanding high water pressure, and shock resistance. Simplifying the system’s structure has also improved ease of maintenance and operation.
The development is expected to make it possible to reduce costs and shorten delivery times by replacing submarine equipment that had relied on imports with domestically developed technology. The company also expects that its launch-force analysis technology, which allows the system to be designed for submarines of various configurations, will help develop next-generation submarines and strengthen its competitiveness in overseas orders.
Ship orders and financial performance have also continued to improve recently. Hanwha Ocean disclosed that on the 30th of last month it signed a contract with a Bermuda-based shipowner to build two very large crude carriers (VLCCs) for 356.8 billion won. Its cumulative orders this year total about $8.11 billion.
Hanwha Ocean posted consolidated revenue of 3.4139 trillion won for the third quarter of this year, up 12.9% from the same period last year, and operating profit of 485.7 billion won, up 67.6%.

[email protected] Lee Jeong-hwa Reporter