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Howa Machinery hits daily limit up as funds accelerate into defense drone sector
Shares of Howa Machinery, Ltd. <6203> surged to hit their daily limit up at 1,670 yen, remaining locked at that price with unfilled buy orders. While the company manufactures defense-related products including firearms, market participants have increasingly focused on the fact that Prodrone, which Defense Minister Shinjiro Koizumi visited on May 20, is jointly developing a drone equipped with a dropping mechanism with Howa Machinery. Although some time has elapsed since the defense minister's inspection, news emerged on May 28 of an Iranian drone attack on Kuwait. Amid growing recognition of the potential for drones as a key defense capability, investment funds rushed into Howa Machinery on speculation of expanding demand for defense drones, driving the sharp rally. Japan Drone 2026, the nation's largest drone exhibition, is scheduled to begin on June 3, fueling expectations for further industry-related news.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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