[Click eStock] "HVM, Expecting 'Spaceship Launch' Ripple Effect"

Hana Securities expected on the 21st that sales of advanced metals for cutting-edge industries such as the space industry by HVM, an advanced metal manufacturing company, could rapidly increase. It is forecasted that sales and profits will grow as the number of spacecraft launches by global companies, including those in North America, increases.

SpaceX spacecraft Starship [Photo by Yonhap News]

HVM produces metals required for cutting-edge industries such as semiconductors, electronics, displays, and space. Based on high-purity 'vacuum melting technology,' it manufactures aircraft engine material metals that can withstand high temperatures, as well as metals for semiconductors that require high purity and cleanliness. Vacuum melting technology is a method of melting metals in an oxygen-free vacuum state to prevent the formation of oxides or impurities.

Seongho Kim, an analyst at Hana Securities, introduced, "HVM has a track record of supplying special steel and copper (Cu)-based advanced metals for launch vehicles such as Naro and Nuri through joint development with the Korea Aerospace Research Institute." He added, "Since 2022, HVM has also been supplying advanced metals to North American space company A."

Analyst Kim assessed, "Although HVM is not the sole metal supplier in company A's supply chain (value chain), considering the monopolistic nature of the advanced metals market, it is possible to expect a trickle-down effect from the increase in spacecraft launches."

He explained, "HVM holds about 30% price competitiveness compared to global competitors and is expanding sales related to the space industry by leveraging its short production period as a strength." HVM's sales increased from 34.4 billion KRW in 2022 to 41.5 billion KRW last year, and sales of advanced space metals quadrupled from 1 billion KRW to 5.1 billion KRW during the same period.

He also forecasted, "If company A increases spacecraft launches, HVM's space sales proportion could exceed 30%, and as the proportion of high-margin space, aerospace, and defense sectors increases, the profit growth will also be significant."