[Edaily Reporter Kim Hyung-il ] Hana Securities forecasts that HVM CO.,LTD.(295310)will expand its production value chain from its existing melting and materials production capabilities to include aerospace forging processes through a new investment of approximately 41.6 billion won in state-of-the-art aerospace forging equipment.

On the 21st, Han Yu-geon, an analyst at Hana Securities, stated, “HVM CO.,LTD.’s expansion of Plant No. 3 is a preemptive response to the potential for a shortage in production capacity (CAPA), rather than merely addressing the current increase in orders,” adding, “A virtuous cycle will be established, driven by this large-scale investment in forging equipment and the subsequent explosive growth in aerospace sales.”

On the 15th, HVM CO.,LTD. announced a new investment of approximately 41.6 billion won in state-of-the-art aerospace forging equipment. The investment period runs from this month through December 2028, and the amount represents about 38% of the company’s equity.

Previously, in June, the company signed two supply contracts for superalloys and special alloys for space launch vehicles, with a combined value of approximately 24.4 billion won. One analyst noted that as SpaceX rockets grow larger and engines become more advanced, the importance of superalloys and ultra-high-purity materials capable of withstanding high-temperature and high-pressure environments will increase.

One analyst explained, “The connection between HVM CO.,LTD. and SpaceX requires a more sophisticated approach and interpretation than simply viewing it as a structure where increased launches lead to increased revenue,” adding, “The company’s competitive edge lies in the fact that its value chain—spanning melting, remelting, forging, and finished materials—is expanding in earnest.”

He added, “This is not merely a matter of increasing production capacity; we expect the company to expand beyond aerospace into the supply of forgings and components for other industries based on specialty alloy materials.”

Hana Securities expects that, in addition to the space industry, HVM CO.,LTD. will supply mass-production volumes to a global top-tier gas turbine blade manufacturer by 2027 and expand into supplying new materials for defense weapons.

HVM CO.,LTD.’s aerospace order backlog at the end of the second quarter stood at approximately 49.99 billion won, marking the highest level since the company’s founding. An analyst predicted an improvement in the product mix and top-line growth driven by the expanding share of high-margin aerospace materials.

For this year, on a standalone basis, estimated revenue is projected to reach 120.4 billion won, an 81% increase year-over-year, while operating profit is expected to rise 210% to 18.1 billion won. The operating profit margin is forecast to be 15%. Regarding third-quarter net income, the analyst believes there is a high likelihood of returning to profitability due to the base effect from the valuation gain or loss on convertible bonds (CBs) based on the current stock price.

One analyst “The number of Starship launches is expected to rise sharply from 2027 to 2029, reaching approximately 15, 30, and 50 launches, respectively,” adding, “As new production of Raptor engines is estimated to increase from a minimum of 500 units to a maximum of 2,500 units, HVM CO.,LTD.’s new order intake is likely to continue its steady upward trend through 2029.”