Hanwha Aerospace Wins U.S. Self-Propelled Howitzer Project...Expected to Expand to Europe [Click eStock]

Daishin Securities: "Top Pick Among Defense Industry Stocks"

Hanwha Aerospace, the manufacturer of the K9 self-propelled howitzer, has secured the U.S. Army's next-generation self-propelled howitzer project. This marks the first time a domestic defense system has entered the U.S. market.

On the 20th, Choi Jeonghwan, a researcher at Daishin Securities, stated, "Hanwha Aerospace is the most attractive company in the sector, not only in terms of short-term performance but also for mid- to long-term growth," maintaining a "Buy" rating with a target price of 1.72 million won. The analyst also kept Hanwha Aerospace as the top pick in the defense industry sector and sustained the sector investment rating of "Overweight."

Hanwha's K9 self-propelled howitzer exhibited at IDEX 2025. Hanwha Systems

On the 18th (local time), the U.S. Army selected Hanwha Aerospace as the prototype manufacturer for its next-generation self-propelled howitzer project (MTC). The total contract is valued at 100 million U.S. dollars, approximately 140 billion won. This is an OTA-type contract, which means it is not an immediate mass production agreement—the company will first manufacture six wheeled K9 prototypes. The first prototypes are scheduled to be delivered in the fourth quarter of this year, after which they will be evaluated by the U.S. Army. The full-scale production contract is slated to be signed in the second quarter of 2028. The final assembly of the weapon system will be conducted at a local factory in Alabama.

Global leading land defense companies such as Germany’s Rheinmetall, the UK’s BAE Systems, France-Germany joint venture KNDS, and the United States’ General Dynamics all participated in the bid for this project. Researcher Choi noted that by being selected over these companies, Hanwha Aerospace has proven itself "the most competitive company in the global land defense sector."

The ultimate goal of the project is far more ambitious. The MTC project aims to replace all of the existing M777 towed howitzers currently used by the U.S. military with new self-propelled howitzers. The target includes towed artillery pieces used by Stryker Brigade Combat Teams (SBCT) and Infantry Brigade Combat Teams (IBCT), and the potential scope is estimated to be as large as 498 units.

Researcher Choi believes that this U.S. contract will serve as a catalyst for contracts with other countries. He commented, "For the past 50 years, the U.S. ground defense market has been dominated by American and British firms, but this selection signals a paradigm shift in the global defense industry." He added that, "Considering how quickly the M109 self-propelled howitzer spread across Western countries after mass production began, it is likely that the K9 will follow a similar path."

The M109 was in fact exported to Germany, the UK, Denmark, the Netherlands, and Italy after being introduced in the U.S. in 1960. At present, the K9 is being operated by the United States, Australia, Poland, Romania, Finland, Norway, Estonia, and Turkiye, and there are high expectations for a contract in Spain. Researcher Choi anticipates that with the U.S. selecting the K9, other derivatives, including both wheeled and tracked versions, as well as armored vehicles like the Redback and Polish KRAB self-propelled howitzers, will also proliferate quickly.

The synergy at the group level was also highlighted. Choi explained, "When it comes to winning defense contracts nowadays, elements such as local investment and technology transfer are as important as production and technical capabilities." He predicted, "Not only will cooperation in the land defense sector accelerate with NATO member states, including the U.S., but collaboration in the maritime defense sector will also intensify going forward."

This content was produced with the assistance of AI translation services.