HB Technology

HB Technology operates through an equipment division and a components/materials division.

The equipment division produces automatic optical inspection (AOI) systems for OLED and LCD front-end processes, laser repair equipment, and integrated exterior inspection equipment for secondary batteries, and has recently expanded into glass substrate inspection and repair equipment for semiconductor packaging.

The components/materials division manufactures light guide plates and diffusion plates used in display backlight units, targeting the premium large-screen TV market through technology development and cost reduction.

Major customers include Samsung Display, Samsung Electronics, and Samsung SDI, alongside Chinese panel makers such as BOE, CSOT, Tianma, and HKC. The company is known to hold a high market share in AOI inspection equipment for Samsung Display's OLED front-end process.

As a new growth axis, the company has confirmed supplying pilot-production glass substrate inspection and repair equipment to SKC's subsidiary Absolics, drawing attention amid discussions of glass substrate adoption by high-performance computing players such as Intel, Nvidia, and AMD.

However, the secondary battery inspection equipment segment is understood to have seen slower order recovery due to the electric vehicle demand slowdown (the so-called chasm).

In terms of competitive positioning, DIT is cited as a comparable in display inspection equipment, while Gigavis and Intekplus are cited in glass substrate inspection.

Consolidated revenue in 2025 was KRW 160.3 billion, broadly similar to KRW 162.4 billion in 2024, but operating profit swung to KRW 6.2 billion (a 3.9% operating margin) from an operating loss of KRW 16.5 billion (-10.2% margin) in 2024.

Net income also turned from a loss of KRW 51.6 billion in 2024 to a profit of KRW 28.4 billion in 2025, marking an improvement in the overall profit and loss structure.

In 2023, despite revenue of KRW 111.6 billion and an operating loss of KRW 22.1 billion (-19.8% margin), net income reached KRW 79.3 billion, illustrating a recurring gap between operating results and net income.

Looking at recent quarters, 2Q25 posted revenue of KRW 42.3 billion, operating profit of KRW 0.1 billion, and owner net income of KRW 8.5 billion; 3Q25 showed revenue of KRW 36.2 billion, an operating loss of KRW 0.2 billion, and net income of KRW 17.0 billion; 4Q25 revenue reached KRW 51.8 billion with operating profit of KRW 9.4 billion (roughly 18% margin) and net income of KRW 3.5 billion, marking a notable margin improvement in the fourth quarter.

In 2026, 1Q revenue was KRW 36.3 billion with operating profit of KRW 0.5 billion and net income of KRW 18.2 billion, while 2Q revenue was KRW 28.5 billion with operating profit of KRW 0.5 billion and net income of KRW 10.6 billion — revenue has swung significantly by quarter while operating profit has stayed comparatively thin relative to revenue in most periods.

Owner net income has repeatedly exceeded operating profit by a wide margin during this stretch, suggesting non-operating items have materially affected net income and warranting attention to both operating and net profit trends going forward.

Over the trailing four quarters (3Q25 through 2Q26), aggregate figures show revenue of roughly KRW 152.9 billion, operating profit of roughly KRW 10.2 billion, and owner net income of roughly KRW 49.3 billion.

The display inspection equipment industry appears to be improving, supported by the accelerating shift to OLED and expanded investment by Chinese panel makers.

Investment in new 8.6-generation OLED lines aimed at IT device demand has continued, and orders for BOE's 8.6-generation OLED lines are reportedly underway, underpinning demand for related inspection equipment.

A case worth noting for industry context is that HB Solution, an affiliate within the same HB Group, signed a KRW 24.6 billion equipment supply contract with China's CSOT in July 2026, reflecting the broader trend of expanding investment by Chinese panel makers.

Across the broader semiconductor equipment industry, rising AI chip demand has prompted Samsung Electronics, SK Hynix, and Micron to pursue large-scale capacity expansions, with a trend of expanding order intake observed among domestic semiconductor equipment makers.

Glass substrate remains an early-stage new material, with Samsung Electro-Mechanics and Absolics progressing pilot line construction and mass-production preparation, while adoption by high-performance computing players such as Intel, Nvidia, and AMD is projected at the earliest from 2026 onward, leaving uncertainty around the commercialization timeline.

One analyst at Hi Investment & Securities assessed that it was still too early to discuss earnings contribution from the related supply chain given that major players' adoption plans are scheduled for 2026-2027 and beyond.

The secondary battery inspection equipment market appears to have been affected by the electric vehicle demand slowdown, with the pace of battery industry recovery cited as key to a rebound in related orders.

The company is understood to expect that expanded OLED mass production and accelerated investment in IT-use OLED in 2026 will translate into broader momentum for the equipment industry.

The components/materials division reportedly plans to maintain competitiveness through technology development and cost reduction targeting the premium large-screen TV market.

In the glass substrate segment, the company has already supplied pilot-production inspection and repair equipment to Absolics, with the timing of mass-production expansion and additional orders likely to be key to future earnings contribution.

With BOE's 8.6-generation OLED lines 1 and 2 already ordered, the industry has floated the possibility of additional orders for lines 3 and 4, which, if confirmed, could be a further catalyst for inspection equipment revenue.

The recovery timeline for the secondary battery inspection equipment segment is expected to depend on whether domestic and overseas battery makers resume capacity expansion and on the pace of securing new customers.

The company approved its 29th-term financial statements and resolved a cash dividend of KRW 20 per share at its March 2026 annual general shareholders' meeting, indicating an intent to maintain a stable dividend policy.

However, revenue contribution from new businesses such as glass substrate and secondary batteries remains at an early stage, with the timing of meaningful earnings contribution heavily dependent on customers' mass-production schedules.