[Stock in Focus] HVM Hits Record High on Expectations of Space Industry Growth Benefits

HVM is showing strong performance in early trading.

As of 10:25 a.m. on January 2, HVM was trading at 64,800 won, up 10.02% (5,900 won) from the previous trading day. During the session, the price climbed as high as 65,300 won, setting a new 52-week high.

Investor sentiment appears to have been boosted by expectations that the company will grow alongside the rapidly increasing demand for special alloy products in high value-added industries such as space and aerospace defense.

HVM, the successor to Korea Vacuum Metallurgy established in 2003, is recognized for having built unrivaled competitiveness in the advanced and special metals manufacturing sector through about 20 years of technological development. Jeong Jinsu, a researcher at Heungkuk Securities, stated, "Key components for the space industry are produced in a multi-variety, small-lot production system, making it difficult for large corporations to enter the market. Additionally, the highly sophisticated production lines require significant initial investment, which limits both new competitors and the possibility of supplier substitution." He predicted that the company would become "a hidden player in the early days of the space industry."

Researcher Jeong added, "The company's order backlog for the space industry more than doubled this year, and as a result, it has secured enough orders to cover at least three quarters, bringing its advanced metal production facilities (vacuum melting) close to full operation. Accordingly, the second Seosan plant, which began commercial operation at the end of September last year (with an annual vacuum melting capacity of 15,600 tons), is expected to mark the starting point for the company's topline growth to accelerate."