Hvm

HVM is a specialty metals manufacturer established in 2012 that listed on KOSDAQ in 2024 through the technology special listing track.

Its core competency is high-purity vacuum melting technology, operating self-built equipment across vacuum induction melting (VIM), vacuum arc remelting (VAR), plasma arc cold hearth melting (PACHM), and electron beam melting (EB).

Main products are high value-added materials including nickel-based superalloys, iron-based high-strength alloys, titanium-based special alloys, and semiconductor sputtering targets.

According to a February 2026 report by SK Securities, as of the third quarter of 2025 revenue mix by product was 51.7% iron-based, 29.6% nickel-based, and 18.8% copper-based and other, while by end market it was 56.0% space, 15.8% semiconductor/electronics, 13.8% aerospace/defense, and 14.4% petrochemical/plant.

Its core customer is the largest U.S. private space company, and in March 2026 the company obtained 'Tier 1 Raw Material Flight Supplier' approval following an audit by that customer.

Domestically, a titanium alloy co-developed with Korea Aerospace Industries (KAI) is expected to be used in key components of a domestically produced supersonic fighter jet, laying groundwork for expansion in the aerospace and defense segment.

On the production side, the second Seosan plant completed in June 2025 secured the domestic-largest 12-ton vacuum melting capacity, and the company supplies materials to over 300 customers.

Vacuum melting is a process with high barriers to entry due to heat transfer inefficiency, evaporation issues, and equipment complexity, and this technical capability has helped the company maintain a leading position in the domestic advanced metals market.

HVM posted a net loss in 2024 with revenue of KRW 45.1 billion, an operating loss of KRW 6.8 billion, and a net loss of KRW 8.4 billion, but turned profitable in 2025 with revenue of KRW 66.5 billion (up roughly 47% year on year), operating profit of KRW 5.8 billion (operating margin 8.8%), and net income attributable to owners of KRW 12.6 billion.

Notably, in 2023 the company already posted an operating profit of KRW 3.7 billion on revenue of KRW 41.4 billion yet still recorded a net loss of KRW 6.1 billion, indicating that a gap between operating results and the bottom line has been a recurring feature of its financial performance.

On a quarterly basis, 2Q25 revenue was KRW 16.7 billion with operating profit of KRW 3.8 billion and owner net income of KRW 3.0 billion, but 3Q25 revenue fell to KRW 13.4 billion with an operating loss of KRW 0.3 billion and a net loss of KRW 0.8 billion.

The fourth quarter recovered to revenue of KRW 23.4 billion and operating profit of KRW 1.2 billion, while net income jumped to KRW 9.8 billion, a scale disproportionate to operating profit that suggests a meaningful non-operating gain factor.

First-quarter 2026 continued the improvement with revenue of KRW 23.3 billion and operating profit of KRW 4.4 billion, alongside net income of KRW 3.4 billion.

However, in 2Q26, even as revenue grew to KRW 29.2 billion and operating profit remained positive at KRW 2.0 billion, net income attributable to owners swung to a large loss of KRW 9.0 billion.

The precise cause requires separate verification, but given that the company issued a KRW 92 billion convertible bond in April 2026 at a conversion price of KRW 90,916, fair-value remeasurement of the embedded conversion option cannot be ruled out as a contributor to this non-operating volatility.

Overall, revenue and operating profit have broadly trended upward across quarters, while net income has swung sharply from quarter to quarter, underscoring the need to view operating profit and net income separately when assessing performance.

The global space industry has entered a private-sector-led 'New Space' era, with launch vehicle production and launch frequency rising rapidly, expanding demand for advanced metal materials such as superalloys that withstand high temperature and pressure.

In semiconductors, demand for high-purity metal materials such as sputtering targets has remained steady alongside advanced packaging and process upgrades.

In aerospace and defense, the ramp-up of domestic fighter jet production is coinciding with new material certifications such as titanium alloys translating into revenue.

According to market analysis by Azoth Analytics, the global titanium alloy market is projected to expand from roughly KRW 1.8 trillion in 2018 to about KRW 4.3 trillion by 2028.

Per the company's own analysis, following the second-plant expansion it has secured competitiveness through delivery times of 3-6 months versus the typical 1-2 years of global competitors, at selling prices around 60-70% of global peers.

However, Hana Securities noted in a July 2025 report that demand volatility can arise depending on the investment cycle of the aerospace and defense industry, and that raw material price fluctuations and capex burdens can also affect profitability.

Given the limited number of domestic suppliers of vacuum-melted advanced metals, the market appears to be in an early phase of consolidation around a small number of companies with certifications and track records.

In April 2026 the company issued a KRW 92 billion unsecured private-placement convertible bond, raising KRW 50 billion for facility funds toward third-plant expansion and KRW 42 billion for operating funds including raw material purchases.

The conversion price was set at KRW 90,916, with a conversion request period running from April 2027 to March 2031. This provides a funding base for future capacity expansion and revenue growth, while also representing a potential equity dilution factor if conversion is exercised.

More recently, news emerged of a supply contract worth KRW 16.7 billion for 'super alloy' materials, which can be viewed as evidence of diversification in supply contracts beyond the existing major space-sector customer.

The company is pursuing customer diversification by expanding domestic and international space, aerospace, and defense customers, which remains an ongoing task to reduce reliance on any single customer.

In the aerospace and defense segment, titanium alloy co-developed with KAI may see expanded supply in line with mass production volumes of the domestically produced supersonic fighter jet.

If the third-plant expansion proceeds as planned, it would enable the company to handle additional order volume through expanded capacity, though the pace of capital deployment and the timing of utilization stabilization remain variables that require ongoing monitoring.