[Click eStock] "HVM to Benefit from SpaceX IPO... Order Rally Expected in Second Half"

With the initial public offering (IPO) of private space company SpaceX on the horizon, market interest in HVM, a domestic specialty metal materials company, is rising. As SpaceX prepares for a large-scale capital raise and is expected to expand production of space launch vehicles, there are forecasts that HVM, the official supplier of specialty materials, will see even more robust growth in its performance.

Yoo-Gun Han, a researcher at Hana Securities, stated in a recent report, "HVM is expected to benefit both directly and indirectly from the SpaceX IPO," adding, "The anticipated strength of new orders will be even greater in the second half of the year compared to the first half."

According to industry sources, SpaceX is scheduled for its IPO on June 12, 2026. The company’s valuation is expected to reach around USD 1.75 trillion, which is approximately KRW 2,670 trillion. Through this listing, SpaceX is projected to raise about USD 75 billion, with the funds to be heavily invested in core businesses such as Starship, Starlink, and artificial intelligence (AI) infrastructure.

The market is particularly focused on the expansion of the next-generation space launch vehicle, Starship. As reusable launch vehicle technology becomes more advanced, the number of launches is expected to increase significantly, reaching two to three times per week. The expansion in launch vehicle production will inevitably lead to increased demand for specialty alloys.

HVM is a company specializing in advanced materials for space and aviation, producing nickel-based superalloys and high-strength alloys. Currently recognized as the official specialty materials supplier for SpaceX, HVM is seen as a direct beneficiary of the global space industry’s growth.

Han noted, "Even during the typically off-peak first quarter, the company achieved solid top-line growth," explaining, "With space division sales accounting for more than 60%, the semiconductor division also improved its product mix and profitability, supported by the boom in downstream industries."

The outlook for second quarter earnings is also bright. As revenue recognition from the existing order backlog accelerates and the boom in the space and semiconductor industries continues, significant performance improvement is expected. Hana Securities forecasts HVM’s second quarter revenue to reach KRW 3.39 billion, up 56.8% year-on-year and 21.8% quarter-on-quarter.

Growth in the core space division is projected to stand out. Due to the expansion in launch vehicle production by top-tier global space companies, the shipments of nickel-based superalloys and high-strength alloys are expected to increase substantially.

Han said, "The core driver of profitability, the space division, is expected to see a significant increase in shipments of key products such as nickel-based superalloys and high-strength alloys, thanks to the expansion of launch vehicle manufacturing by top-tier global space clients."

Accordingly, HVM’s annual revenue for this year is expected to reach KRW 10.01 billion, a 47.4% increase from last year. Of this, the space division is projected to account for 62.9% of total revenue, leading the company’s growth.

The order flow is also positive. As major downstream industries are expected to ramp up investment in the second half of the year, new orders are also anticipated to increase further in the latter half. As of the end of the first quarter, the order backlog stood at approximately KRW 4.86 billion. The fact that the backlog, which had been declining last year, has started to increase again is also seen as a positive sign.

Growth potential in business divisions outside the space industry is also drawing attention. In the semiconductor division, driven by improved market conditions, shipments of the main product, sputtering targets, continue to be stable. This year, semiconductor business revenue is expected to reach about KRW 2.12 billion.

The aircraft engine business is also emerging as a new growth axis. As demand for localization of materials grows in the global aviation industry, new supply opportunities are opening up. The company is reportedly already finished with related sample tests, and full-scale mass production is expected to begin from 2027 after results are confirmed in the second half of this year.

Recently, the share price trend has been somewhat sluggish. Amid increased macroeconomic uncertainty due to war risks in the Middle East and concerns over global interest rate hikes, HVM’s share price fell by about 40% compared to its peak in May 2026.

However, analysts view the current share price as an excessive correction. Considering the expansion of investment in the space industry following the SpaceX IPO and growth in downstream industries, they believe the factors undermining corporate value are limited.

Han assessed, "Given the company’s performance growth driven by the listing of top-tier downstream clients and the boom in downstream demand industries, further share price declines are likely to be limited."

The stock performance of global competitors supports this view. U.S. specialty alloy companies such as Carpenter and ATI have maintained steady growth since 2020, benefiting from the expansion in SpaceX’s launch vehicle production.

Hana Securities projects that after achieving revenue of KRW 10.01 billion this year, HVM will grow to KRW 14.82 billion in 2027. Operating profit for the same period is expected to reach KRW 2.06 billion, up 55.4% from last year, with the operating margin rising to 17.6%.

Han concluded, "The current share price is a temporarily oversold range due to macro issues," adding, "From a mid- to long-term perspective, the stock offers strong investment appeal."

This content was produced with the assistance of AI translation services.