[Click eStock] "HVM, Aerospace Business Drives Growth"
NH Investment & Securities analyzed on the 1st that HV M's aerospace and defense businesses will drive growth. No investment opinion or target price was provided.
Sehoon Son, a researcher at NH Investment & Securities, said, "HV M manufactures various alloys based on technology that melts metals in a vacuum state and supplies them to clients," adding, "Vacuum melting technology has high entry barriers due to inefficiencies in heat transfer, material evaporation issues, and equipment complexity."
He evaluated that the aerospace and defense businesses are leading HV M's growth. He expects benefits as we enter the New Space era led by the private sector. He said, "HV M began supplying advanced metals to the U.S. private rocket company S from the third quarter of 2022, with the sales proportion rising to 2.9% in 2022, 12.2% in 2023, and 21.4% in the first half of 2024."
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Researcher Son forecasted, "As the global space industry shifts from government-led to private-led in the New Space era, the number of satellite launches is increasing annually," and added, "HV M's clients plan to reduce rocket launch costs by utilizing rocket reuse technology, so the pace of satellite launches by private companies will accelerate."
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