[Click e-Stock] "HVM, Stock Performance Outpaces Space Sector Average"

On January 20, Shinhan Investment Corp. analyzed that HVM, a company specializing in advanced metal materials, saw its stock price surge by approximately 172% over the past year, significantly outperforming the average increase of 109% in the space sector.

On this day, Heo Sungkyu, a researcher at Shinhan Investment Corp., stated, "HVM is expected to continue to show a relatively strong upward trend in stock price within the space sector going forward."

Last year, the overall stock prices in the space value chain rose as the initial public offering (IPO) plans of SpaceX, a private U.S. space development company, became more concrete. Although HVM did not change its earnings guidance (the company's own performance forecast) last year or this year, its stock price soared as it became known that the company supplies special metals to SpaceX.

In the fourth quarter of last year, sales reached 14.1 billion won, up 14.9% from the same period the previous year, and operating profit turned positive to 2.1 billion won, resulting in an operating margin of 14.8%. Researcher Heo pointed out, "The proportion of sales from the space industry stands at about 68.5%, and a similar level is expected to continue this year."

He further noted, "The second plant in Seosan began generating sales in the fourth quarter," adding, "Since the maximum operating rate is realistically expected to be in the 70% range, it would be ideal for sales to reach 300 billion won in three to four years. With the scaling up of equipment, the mid-term margin rate is projected to be around 15%."

Concentration in the space sector is also expected to continue strengthening. Anticipated factors include SpaceX's first-half next-generation launch vehicle in-flight refueling test and the securing of Mars-Earth launch windows (periods when launches are possible) at the end of the year.

However, Researcher Heo added, "Since quality certification (qualification test) by customer companies using FMM (metal mask) raw materials is still underway, this has not been reflected in the estimates," and also noted, "Due to the distribution structure, where final delivery is made through SCM (supply chain management) companies, it is difficult to specify concrete details such as the exact end-use of the metals or the frequency of repeat orders."