HVM uses vacuum-melting technology — melting metal under vacuum to strip out impurities to the extreme — to make high-purity specialty metals such as nickel alloys, titanium alloys and superalloys, which it sells as materials for space launch vehicles, aerospace, defense and semiconductors. In 2025 revenue rose 47% year on year to ₩66.5 billion and the company swung from loss to profit, and in the first quarter of 2026 revenue jumped 79% year on year while operating profit surged to ₩4.4 billion. The point worth noting is that its strength — two overseas aerospace superalloy supply contracts arriving in June alone (about ₩24.5 billion, or 37% of last year's revenue), with the substance of growth confirmed in disclosures — is offset by still-negative free cash flow, a high debt ratio, and the potential for share-count increases from a ₩92.0 billion convertible bond, so growth pace and cash generation have to support each other.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 47.4% year over year, and the pace is quickening (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 79.4% higher than a year earlier.
- ROE is 14.0% (total-net basis). It is above the sector average.
- Operating margin is 8.8%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Moon Seung-ho 31.02% (individual)
Controlling bloc incl. related parties 35.85%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- HVM's core is vacuum-melting technology, which melts metal under vacuum (a near-airless state).
- When metal is melted in open air, oxygen, nitrogen and hydrogen get mixed into it; this company uses equipment such as vacuum-induction melting and vacuum-arc melting to strip out these impurities to the extreme and produce ultra-high-purity metal.
- The nickel alloys, titanium alloys and superalloys made this way are used where extreme environments must be endured, such as rocket engines, aircraft parts and defense materials.
- It also supplies high-purity target materials for semiconductor processes and precision mask materials for OLED displays.
- In short, it is a materials company that sells 'clean specialty metals' that others find hard to make into cutting-edge industries such as space, aerospace, defense and semiconductors.
- The share price is ₩45,300, well below both its 20-day (about ₩63,200) and 60-day (about ₩86,700) lines.
- The declines have been very large: -55% over the past month and -42% over three months.
- It sits about 66% below its 52-week high.
- The RSI (a gauge of recent up-versus-down strength on a 0-100 scale) is 31.2, close to oversold territory.
- Earnings are improving fast while the price has pulled back sharply, so on price alone this is a spot where expectations have cooled considerably.
- Profitability is on a clear improving trend: ROE (how much the company earns in a year on its equity) is a healthy 14.0%.
- The valuation metrics are high, however: the P/E ratio (how many times a year's earnings the price represents) is 43.2x and P/B (price relative to net assets) is 6.05x.
- There is a trap here.
- The ₩12.6 billion net profit in 2025 includes a large non-operating one-off gain.
- In the fourth quarter alone, operating profit was ₩1.2 billion while net profit was ₩9.8 billion, so non-core items lifted profit.
- So the 43x P/E on last year's earnings was calculated with profit inflated beyond the underlying business's power.
- Debt also needs examining: the debt ratio (debt relative to equity) is not low at 192%, and the interest-coverage ratio (how many times operating profit can cover interest) is 1.62x, leaving little room.
- The FCF yield (cash actually generated relative to market cap) is -4.6%, so with capital investment running ahead, cash is still a net outflow.
- This is common in a materials company at the start of its growth, but the fact that cash is negative is something to confirm clearly.
- The pace of growth has quickened noticeably.
- Revenue grew from ₩41.5 billion in 2023 to ₩45.1 billion in 2024 and ₩66.5 billion in 2025, a 47.4% increase in 2025.
- In particular, operating and net profit were in loss in 2024 but turned to profit in 2025.
- Into 2026 the trend has strengthened further: first-quarter revenue was ₩23.3 billion, up 79% year on year, operating profit jumped roughly threefold to ₩4.4 billion, and net profit rose sharply to ₩3.4 billion.
- The key point is that the first-quarter operating margin of 19% has more than doubled from last year's full-year 8.8%.
- This improvement is no accident: in June 2026 alone, two overseas aerospace superalloy supply contracts arrived, totaling about ₩24.5 billion — equivalent to 37% of last year's full-year revenue.
- In other words, the basis for the remaining quarters' revenue is visible in disclosures.
- Reflecting this contract visibility together with the margin increase, this year's profit has room to grow markedly over last year on an underlying-business basis.
- Even though the P/E on last year's earnings looks high, the value divided by this year's expected earnings comes out lower.
- That lowered value, however, is still in the high 30s, so it is more accurate to read it as a spot carrying a growth premium than as one that has become cheap.
- The center of recent disclosures is order wins and fundraising.
- On June 19 and 25, 2026, the company signed superalloy supply contracts with overseas aerospace metals distributors for ₩16.7 billion (25.1% of last year's revenue) and ₩7.8 billion (11.7%) respectively.
- Both are self-produced and supplied overseas.
- Earlier, in April, it issued a ₩92.0 billion convertible bond to raise facility and operating funds.
- The coupon and maturity yield are 0% and the conversion price is ₩90,916; if fully converted into shares, the issued share count would rise by 7.76%.
- In other words, it is a positive event that secures the funding needed for growth-related capital investment, while also being a factor that could increase the share count later.
- In this way, the company is demonstrating the substance of growth through order wins while raising the funds to support that growth.
- HVM is a materials company whose basis for growth is confirmed in disclosures.
- Its strengths are clear: in the high-barrier field of specialty metals for aerospace and defense, overseas supply contracts are being booked as actual figures.
- Revenue is growing fast, margin is rising, and the profile has shifted from loss to profit.
- Its favorable condition is when space-launch and defense demand continues and new-facility output is filled with contracts.
- The cautions are equally clear.
- First, the valuation is high: last year's profit included a one-off that makes the P/E look inflated, and even on this year's expected earnings it is in the high 30s, so growth expectations are already substantially reflected.
- Second, free cash flow is still negative and the debt ratio is high, so it must endure the time lag between capital investment and cash recovery.
- Third, if the convertible bond converts into shares, the stake could be diluted.
- In conclusion, if order growth and margin retention continue, the growth story strengthens, but if the contract flow breaks or cash recovery is delayed, the high valuation could come back as a burden.
🔎 Valuation vs peers Overvalued
On the surface it is classified as steel/primary metals, but in substance it is a materials company making specialty metals (superalloys, titanium alloys) for aerospace, defense and semiconductors. It should therefore be viewed from the angle of advanced materials and components rather than as an ordinary steel stock; pure listed comparators in this area are scarce domestically, so judgment weighs the business substance and growth phase together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 34.98x | 5.07x | 14.51% |
| TCK (Tokai Carbon Korea) | 36.14x | 4.87x | 13.46% |
The valuation metrics are high in absolute terms: a P/E of 43.2x and P/B of 6.05x on last year's earnings. That said, the ₩12.6 billion net profit last year includes a large fourth-quarter non-operating one-off gain, so this earnings-based P/E has the limitation of looking inflated beyond the underlying business's power. It is therefore more accurate to look again through this year's expected earnings. Reflecting the confirmed first-quarter results, the overseas supply contracts disclosed in June, and the operating margin that has risen to 19%, this year's profit has room to grow markedly over last year's underlying-business basis. Even on that view, the multiple on expected earnings only falls into the high 30s — not a low level. Compared with the earnings multiples of peers of similar business substance — aerospace and defense materials (Hanwha Aerospace at about 35x) or high-value semiconductor materials (Tokai Carbon Korea at about 36x) — the multiple on this year's expected earnings actually sits a touch higher than these. In other words, the multiple eases somewhat as profit grows, but the price is not cheap relative to peers. The strength of having the substance of growth confirmed in disclosures is clear, but that growth expectation is already substantially reflected in the price, so it is judged overvalued. The still-negative FCF, the high debt ratio and the potential for convertible-bond dilution also support this judgment.
Price history Close · MA20 · MA60
The latest close is ₩45,300 and the market capitalization is ₩545.7 billion. The price sits below its 20-day moving average (₩63,162) and below its 60-day moving average (₩86,708). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.2, a neutral level. The one-month change is -55.3%, the three-month change is -41.9%, and the position relative to the 52-week high is -65.9%. Relative strength versus the KOSDAQ is 88 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 89% of all stocks. Over the past three months it lagged the index by 27.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -27.70% / 6M -17.36% / 12M +62.81%
Key metrics vs sector median
Valuation
The P/E of 43.20x is above the sector median (16.39x). The P/B of 6.05x is above the sector median (0.50x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 14.0%, above the sector average (2.0%). The operating margin is 8.8%. The debt ratio is 192.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $27.5M | $29.9M | $44.1M | +47.39% ↑ faster |
| Operating profit | $2.5M | -$4.5M | $3.9M | — |
| Net profit | -$4.0M | -$5.6M | $8.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $27.5M | $29.9M | $44.1M |
| Operating profit | — | — | $2.5M | -$4.5M | $3.9M |
| Net profit | — | — | -$4.0M | -$5.6M | $8.4M |
| Revenue CAGR | 2-yr avg 26.68% | ||||
Revenue rose 47.4% year over year (2023 ₩41.5 billion → 2024 ₩45.1 billion → 2025 ₩66.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Over the 3 years on record, revenue compound annual growth (CAGR) is 26.7%. The two-year revenue CAGR is 26.7%. In the most recent quarter (Q1 2026), revenue was 79.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 14.0% points to solid profitability.
- Revenue grew 47.4% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-25UpdateSigned a superalloy/specialty-alloy supply contract with an overseas aerospace metals distributor. Confirmed contract value about ₩7.75 billion (11.65% of 2025 revenue), self-produced and supplied overseas, contract period 2026-06-24 to 2027-05-01.Expands short-term revenue visibility. A second June aerospace order that reconfirms the basis for growth in disclosures. Source
- 2026-06-19UpdateSigned a superalloy supply contract with an overseas aerospace metals distributor. Confirmed contract value about ₩16.71 billion (25.12% of 2025 revenue), self-produced and supplied overseas, contract period 2026-06-19 to 2026-12-09.Expands the medium-term revenue base. A single contract secures a scale equal to a quarter of last year's revenue, providing a basis for second-half results. Source
- 2026-04-02FilingDecision to issue a 2nd-series convertible bond of ₩92.0 billion. Coupon and maturity yield 0%, conversion price ₩90,916, a 7.76% increase in issued shares on conversion (1,011,923 shares). Use of funds: ₩50.0 billion for facilities, ₩42.0 billion for operations.Secures medium-term capital-investment funding (positive). At the same time, potential for stake dilution on conversion (a caution). Source
- 2026-05-15EarningsQ1 2026 report filed. Revenue of ₩23.3 billion (+79.4% year on year), operating profit of ₩4.4 billion (+292%), net profit of ₩3.4 billion (+482%). Operating margin of 19%, greatly improved from last year's full-year 8.8%.Confirms short-term earnings momentum. Margin rise and a revenue surge appeared at the same time. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Total of the two June 2026 supply contracts | approx. ₩24.5 billion | ₩16,709,674,925 + ₩7,750,370,014 = ₩24,460,044,939 | Confirmed | link |
| Q1 2026 revenue and operating profit | revenue ₩23.3 billion, operating profit ₩4.4 billion | (2026.03) revenue ₩23,267,980,182, operating profit ₩4,416,755,070 | Confirmed | link |
| 2nd-series convertible bond size and conversion terms | ₩92.0 billion, ₩90,916, 7.76% | ₩92,000,000,000, ₩90,916, 1,011,923 | Confirmed | link |
| 2026 expected net profit (forward) | approx. ₩14.5 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01OwnershipOwnership-change filing
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Single supply/sales contract (amended)
- 2026-04-10Disclosure
- 2026-04-03OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-02Material-fact report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-27Single supply/sales contract (amended)
- 2026-03-20PeriodicAnnual business report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.