HVM IR Analysis: What Was Discussed?

HVM presented its current business status and future growth strategies at its IR meeting on September 26, 2025. The company’s remarkable growth in the aerospace sector and its plan to expand production capacity through the construction of a second factory garnered significant attention.

Growth Drivers and Risk Analysis: Why Should Investors Pay Attention?

Growth Drivers

  • Rapid Growth in Aerospace: Sales in the aerospace sector surged by 196% in the first half of 2025, driving overall revenue growth to 29.7 billion KRW.
  • Strong Technological Capabilities: HVM’s competitive edge stems from its vacuum melting technology for high-purity metal manufacturing and its secured patents.
  • Solid Order Backlog: An order backlog of 61.66 billion KRW ensures future sales stability.
  • New Growth Engines: Expansion into the high-melting-point advanced metals and powder alloy market secures future growth momentum.

Risk Factors

  • Increasing Inventory: Inventory rose by 29.6% compared to the end of the previous year, reaching 49.39 billion KRW, necessitating efficient inventory management.
  • High Debt Ratio: A debt ratio of 160.13% indicates high reliance on borrowing, requiring careful financial management.
  • Fluctuating Operating Profit Margin: Profitability may fluctuate due to external factors such as raw material price volatility.

Investment Outlook and Action Plan: What Should Investors Do?

HVM holds high growth potential alongside the growth of the aerospace advanced materials market. However, investors should approach with caution due to risk factors such as inventory management and debt ratio.

Investor Action Plan

  • Carefully analyze IR materials and Q&A sessions.
  • Continuously monitor risk factors such as inventory and debt ratio.
  • Stay informed about trends in related industries, including aerospace and semiconductors.
  • Consider macroeconomic variables such as interest rates and exchange rates.