Spotlight Stocks: Military Drone Opportunities Build Momentum, Several Drone-Related Stocks Remain in Positive Territory

The Executive Yuan has proposed a draft of the 'Self-Reliant National Defense Unmanned Vehicle Procurement Special Act' with a budget of NT$210 billion, currently under review by the Legislative Yuan. Amid growing market expectations for new business opportunities driven by military demand, defense-related stocks have shown relatively strong performance today (20), even as the Taiwan stock market experiences significant volatility. Stocks including Hanjung (2634-TW), Coretronic (5371-TW), Hucera (1810-TW), Pao Yi (8222-TW), TransAsia (2630-TW), Long-Term Shipbuilding (6753-TW), and Chengtian (4541-TW) have remained in positive territory.

Hanjung briefly hit its daily trading limit in early trading, with intraday gains exceeding half of the daily limit.

Aiming to meet the military's asymmetric warfare requirements for 'low cost, high productivity, and anti-jamming capabilities,' Hanjung recently unveiled the AIxVNAV drone visual navigation and positioning system in collaboration with a U.S. company. This system enables precise positioning even in GPS-denied environments.

Analysts believe Hanjung's recent MOUs with U.S. firms MAXAR and Orbital Composites will enhance its ODM integration capabilities for drones. The company is expected to participate in Taiwan's defense drone countermeasure systems and bid on nearly NT$10 billion in defense drone contracts, with relevant projects already underway.

Analysts further note that recent cross-party negotiations have reached growing consensus on the development of the drone supply chain, with all caucuses supporting local drone industry development. The unmanned vehicle budget is expected to be formally implemented as early as next year.