Hanwha Ocean (042660.KS) drops 23% after Canada picks TKMS bid

Hanwha Ocean (042660.KS) fell about 23% after Canada chose Germany’s Thyssenkrupp Marine Systems as preferred supplier for its next submarine fleet, according to CNBC’s July 7 feed. The stock move clears the Tier-1 threshold because it was a single-name decline above 8% tied to a named procurement decision rather than technical trading.

The lost opportunity was large enough to matter for both Hanwha and Korea’s defense-export narrative. CNBC cited Canadian Prime Minister Mark Carney’s announcement naming TKMS as the preferred supplier. The Korea Times estimate cited in coverage put the potential program at up to $100 billion over three decades, reflecting not only construction but long-cycle maintenance and support spending.

Hanwha Ocean had been trading on expectations that its KSS-III Batch-II proposal could compete with TKMS’s 212CD platform. A July 6 Korean report showed the shares rising before the decision as investors priced in at least a meaningful chance of success. The July 7 reversal turned that expectation into a direct equity loss once the Canadian selection moved away from the Korean bidder.

The next items to watch are the formal Canadian procurement timetable, any debrief or protest language from Hanwha, and whether the company can redirect capacity toward other naval contracts. For Korean equities, the event also tests how much of the 2026 defense-export premium depends on a few very large overseas tenders.

Not investment advice. Verify all figures with primary sources before acting.