Evergreen Aerospace Hits Record High on Drone Deal Hopes

Evergreen Aerospace (2645) saw its stock price soar to a historic high, reaching the upper limit of NT$238, fueled by positive sentiment surrounding the government's "National Defense Autonomy Drone Procurement Special Statute" draft. The legislative progress, with four related draft proposals sent for joint committee review last Friday, has significantly boosted investor confidence in the company's future prospects.

The company is a primary contractor for the military's drone procurement program, and its established track record is expected to position it favorably for the second phase of bidding. This anticipation has driven substantial trading volume, with over 8,000 shares traded by 10:13 AM, and a significant backlog of buy orders at the upper limit.

Evergreen Aerospace's manufacturing capabilities are robust, encompassing four aircraft maintenance hangars, an engine factory, an aircraft parts factory, and warehouses. The planned Guanyin Second Factory, designated for manufacturing, is slated for completion by the fourth quarter of this year and is expected to commence production in 2027. This expansion is anticipated to enhance the company's production capacity and operational efficiency.

The surge in Evergreen Aerospace's stock reflects a broader market interest in defense industry stocks, particularly those involved in indigenous defense development. The government's push for self-reliance in drone technology is seen as a significant catalyst for companies like Evergreen Aerospace, promising substantial growth opportunities in the coming years.