HVEM shares experienced a significant increase of over 20% during trading hours, driven by optimistic forecasts from the financial sector.
According to the Korea Exchange, as of 2:22 PM, HVEM shares were trading at 117,700 won, up 19,800 won (20.22%) from the previous trading day.
Earlier in the day, Meritz Securities released a report projecting growth and improved performance across all business divisions for HVEM.
Jung Ji-soo, a researcher at Meritz Securities, stated, "In the first quarter, the standalone performance showed a revenue increase of 79.4% year-on-year to 23.3 billion won, with operating profit rising 292.2% to 4.4 billion won, surpassing market consensus of 3.3 billion won in operating profit." He noted that sales to the world's largest private space company led the performance improvement, with a 143% year-on-year increase to 14.9 billion won.
He further projected that in 2026, revenue by business division would be 5.3 billion won for existing products (-27.2%), 76.4 billion won for space (93.3%), 13 billion won for aerospace and defense (76.7%), and 18.2 billion won for semiconductors and electronics (47.9%). He emphasized that all divisions, except for existing products, are expected to see significant growth.
Jung added, "The new launch vehicle from the world's largest private space company is expected to begin its first launch this week, with launch frequency rapidly increasing. The supply of nickel-based special alloys for the engine part of the new launch vehicle is anticipated to rise significantly starting in the second half of the year. We are planning to expand production facilities through the issuance of 92 billion won in convertible bonds last month, and once the third factory expansion is completed, we expect to achieve annual sales exceeding 500 billion won."
* This article has been translated by AI.
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