KOSDAQSemiconductors297890

Hb Solution

₩1,666▲ 1.28%2026-10-02 close

Market Cap

₩121.5B

Turnover

₩300M

Volume

190,000 shares

Shares out.

73.1M

PER

2.8×

PBR

0.4×

EPS

₩590

Dividend Yield

1.80%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close

Report overview

Operating Losses, New-Tech Gambit

HB Solution keeps posting net profit attributable to owners on non-operating gains even as display equipment revenue slows and operating losses persist for four straight quarters, while it tries to build semiconductor metrology and defect-inspection equipment into a new growth pillar.

1
Consolidated 2025 revenue fell to KRW 62.8bn, more than half the prior year's KRW 131.5bn, yet net income attributable to owners turned positive at KRW 26.5bn.
2
Three of the last four quarters (2025Q3 to 2026Q2) posted operating losses, with quarterly revenue shrinking to a KRW 6-15bn range.
3
In April 2026 the company licensed high-resolution thermal imaging microscope technology from the Korea Basic Science Institute (KBSI) to enter the semiconductor failure-analysis (FA) equipment market.
4
With revenue still concentrated on customers such as Samsung Display, the company is pursuing diversification into semiconductors and secondary batteries.
5
The debt ratio stood at a stable 24.9% in 2025, and the company has also been consolidating its Asan and Daejeon sites into a single Sejong facility.

Business structure

Founded in 2001, HB Solution is a display and semiconductor equipment maker whose current name and business structure emerged after a display post-process equipment maker absorbed K-MAC, a pre-process and semiconductor inspection equipment company.

In display pre-process, the company produces ultra-precise measurement equipment such as thickness gauges and lighting inspection systems built on optical measurement and nano-metrology technology, while in post-process it supplies resin-coating, inspection and bonding automation systems (BPL, FOD, UTG, etc.).

In semiconductors, it developed Nano-MEIS, a wafer inspection tool using medium-energy ion scattering, which it has delivered to a national standards institute and a major domestic semiconductor manufacturer for analysis-lab use.

In April 2026 the company licensed high-resolution thermal imaging microscope technology from the Korea Basic Science Institute for semiconductor defect inspection and failure analysis, gaining a precision technique that images microscopic heat generation contactlessly via reflectance changes.

Management has set a goal of extending this technology into power semiconductors (GaN/SiC), secondary batteries and displays to pursue more than KRW 300bn in new annual revenue over the medium to long term.

Inkjet-printing-based OLED light-leak-blocking (ELB) coaters are another core product line, which saw a sharp order increase in the past as a key customer expanded output of premium LTPO OLED panels.

Samsung Display, including its Vietnamese subsidiary, remains the largest customer, with which the company has repeatedly signed large equipment supply contracts.

The company is also pursuing diversification into secondary batteries, automotive and bio applications while continuing R&D on next-generation display equipment, and has been consolidating its Asan and Daejeon sites into a single Sejong facility to improve production efficiency.

Earnings trend

Quarterly revenue · Operating profit

₩30B₩3.8B25Q2₩6.4B-₩2B25Q3₩6.3B-₩300M25Q4₩14.7B-₩1.1B26Q1₩10.2B-₩500M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩187.6B₩27.1B2022₩96.2B₩6.8B2023₩131.5B₩19.3B2024₩62.8B₩4.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩30B	₩3.8B	12.7%
2025Q3	₩6.4B	-₩2B	−31.0%
2025Q4	₩6.3B	-₩300M	−5.1%
2026Q1	₩14.7B	-₩1.1B	−7.7%
2026Q2	₩10.2B	-₩500M	−4.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩187.6B	₩27.1B	₩43.6B	14.5%	30.5%	50.0%
2023	₩96.2B	₩6.8B	₩75.6B	7.0%	32.9%	29.7%
2024	₩131.5B	₩19.3B	-₩20.8B	14.7%	−9.4%	32.8%
2025	₩62.8B	₩4.4B	₩26.5B	7.0%	10.8%	24.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

HB Solution's consolidated revenue moved from KRW 187.6bn in 2022 to KRW 96.2bn in 2023, KRW 131.5bn in 2024 and KRW 62.8bn in 2025. Operating profit likewise fluctuated with the revenue trend, from KRW 27.1bn (14.5% margin) in 2022 to KRW 6.8bn (7.0%) in 2023, KRW 19.3bn (14.7%) in 2024 and KRW 4.4bn (7.0%) in 2025.

Net income attributable to owners, however, followed a different path: it jumped to KRW 75.6bn in 2023 from KRW 43.6bn in 2022, then swung to a net loss of KRW 20.8bn in 2024 despite operating profit of KRW 19.3bn that year.

In 2025 it turned positive again at KRW 26.5bn, well above the KRW 4.4bn operating profit for the year. This recurring gap between operating and net results suggests that non-operating items, such as gains or losses on investment and financial assets, have had a material impact on reported earnings.

On a quarterly basis, three of the last four quarters (2025Q3 to 2026Q2) posted operating losses of KRW -1.97bn, KRW -0.33bn (2025Q4), KRW -1.13bn (2026Q1) and KRW -0.50bn (2026Q2). Revenue also shrank sharply from KRW 30.0bn in 2025Q2 to a KRW 6.3-14.7bn range from 2025Q3 onward.

Even so, net income attributable to owners expanded to KRW 13.2bn in 2025Q3, KRW 13.5bn in 2026Q1 and KRW 17.0bn in 2026Q2, underscoring the growing influence of non-operating factors, though 2025Q4 posted a net loss of KRW 0.4bn, showing that non-operating results have not moved in one consistent direction every quarter.

Industry analysis

The display equipment market is heavily dependent on the investment cycles of domestic panel makers such as Samsung Display and LG Display.

Investment in domestic 8.6-generation IT OLED lines was largely completed by 2024, while from 2025 onward investment has been concentrated among Chinese panel makers building out 8.6-generation OLED lines, shifting the center of gravity for pre-process equipment demand.

Whether the foldable smartphone market expands is seen as a direct variable for demand for OLED light-leak-blocking (ELB) equipment, though some note that demand size is hard to predict until foldable design specifications are finalized.

The field of ultra-precise semiconductor material measurement has historically been dominated almost entirely by foreign equipment, and successful localization is viewed as having outsized impact given the high barriers to entry.

The company has been trying to expand its Nano-MEIS metrology equipment into the market, including signing a non-disclosure agreement with a major domestic semiconductor firm, though a company official said full commercialization would take more time, noting it is “still under testing.” On the competitive front, the company competes with domestic display and semiconductor equipment makers, and technology barriers from foreign firms remain high in ultra-precise metrology.

Outlook

The company has been consolidating its Asan and Daejeon sites into a single Sejong facility to improve production efficiency, which it says should expand production capacity and streamline R&D and manufacturing staffing.

Its largest shareholder, HB Technology, is also relocating to the same site, which the company expects to foster group-level collaboration and synergy.

In semiconductors, based on the high-resolution thermal imaging microscope technology licensed in April 2026, the company has laid out a roadmap to complete customer sample-based proof-of-concept testing within a year and ship its first commercial unit within 24 months.

Its existing flagship Nano-MEIS metrology equipment also continues efforts to enter the market, including a non-disclosure agreement signed with a major domestic semiconductor firm, though the timing of full commercialization remains uncertain.

In displays, whether Chinese panel makers continue investing in 8.6-generation OLED lines and whether new foldable smartphone models launch are cited as variables that will affect orders for ELB and other pre-process equipment.

However, the Korea IR Service's October 2025 forecast of KRW 97.1bn in 2026 revenue and KRW 10.1bn in operating profit differs substantially from the confirmed first-half 2026 quarterly results (KRW 14.7bn in Q1 and KRW 10.2bn in Q2, roughly KRW 24.9bn combined), suggesting the actual timing and strength of any rebound still requires further confirmation.

Valuation

PER

2.8×

PBR

0.4×

ROE

17.0%

EPS

₩590

BPS

₩3,753

Dividend per share

₩30

HB Solution's earnings structure has shown net income attributable to owners moving with greater volatility than operating income over recent years, swinging repeatedly between losses and profits.

Because of this, some market observers note that operating-profit-centric valuation metrics alone may not fully explain the company's earnings pattern.

The Korea IR Service noted in an October 2025 report that the stock was then trading near the lower end of its historical valuation band, attributing this to delays in semiconductor equipment market entry and softer display demand.

On dividends, the company has a history of paying cash dividends, though the recovery of core operating performance and the pace of new-business commercialization appear to weigh more heavily on how the valuation is interpreted than the dividend itself.

Ultimately, how the current valuation is read may depend heavily on when operating profit recovers and how quickly the semiconductor and failure-analysis equipment businesses reach commercialization.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23

Bull factors

Diversification into semiconductor metrology and FA equipment

The high-resolution thermal imaging microscope technology transferred from KBSI in April 2026 targets the semiconductor defect inspection and failure analysis (FA) market, and the company has presented this as a mid- to long-term growth axis addressing a market known to be worth KRW 16 trillion.

The existing Nanomeise measurement equipment also continues to attempt market expansion by signing an NDA with a major domestic semiconductor company.

Both technologies represent challenges to localize equipment in areas where foreign equipment has been dominant, so if successful, the impact from entry barriers could be significant.

Stable balance sheet and positive net income

The 2025 debt ratio stood at 24.9%, maintaining the lowest level among the recent four years. Even as operating profit scale contracted, net profit attributable to controlling shareholders turned to a surplus of KRW 26.4 billion in 2025.

Controlling shareholders' equity is also maintained at approximately KRW 246.2 billion, providing a financial buffer.

Potential beneficiary of Chinese OLED capex expansion

After domestic Gen 8.6 IT-use OLED investment was largely completed in 2024, it is understood that from 2025 onward, Gen 8.6 OLED investment centered on Chinese panel makers has continued. It is noted that the company's front-end equipment sales could be linked to this trend.

A strategy of partially offsetting the slowdown in sales to domestic customers with sales to Chinese customers is also being pursued in parallel.

Bear factors

Sharp revenue decline and persistent operating losses

Consolidated revenue fell by more than half, from KRW 131.5 billion in 2024 to KRW 62.8 billion in 2025. Operating losses were recorded in 3 out of the last 4 quarters, and quarterly revenue has remained contracted at a level of KRW 6 billion to KRW 15 billion. Without a recovery in orders for the core equipment business, the operational downturn could continue.

High customer concentration

Samsung Display, including its Vietnam subsidiary, is a key customer that accounts for a substantial portion of the company's large-scale equipment supply contracts. The structure is such that if a specific customer's investment plans or order timing are delayed, earnings volatility could increase. Customer diversification is underway but is still assessed to be at an early stage.

Growing reliance on non-operating items for earnings

Between 2023 and 2024, operating profit actually increased while net profit turned to a loss, repeating a pattern in which the directions of operating profit/loss and net profit/loss diverged.

Since 2025, a trend of expanding net profit amid an operating loss phase has continued, and this volatility in non-operating profit/loss could make earnings interpretation difficult.

Risk factors

Customer concentration risk

Sales dependence on a small number of customers, including Samsung Display, is high, meaning that changes in the timing or scale of that customer's investment could directly affect performance. As the display industry is sensitive to consumer goods cycles, this risk may persist structurally.

New-business commercialization delay risk

Both Nanomeise and the thermal imaging microscope are still in the testing/PoC stage, and the company itself has stated that commercialization will take some time.

If the 1-2 year targets presented in the roadmap are delayed, the timing at which expectations for new growth translate into actual performance could also be pushed back.

Non-operating earnings volatility risk

Over recent years, a pattern has repeated in which net profit attributable to controlling shareholders has moved significantly in a different direction from operating profit/loss.

The possibility cannot be ruled out that if such non-operating profit/loss moves in the opposite direction in the future, the current net profit surplus trend may not be sustained.

What to watch next

Mid-November 2026
The 2026 Q3 quarterly report is due, a key point to check whether the streak of operating losses continues and whether revenue scale recovers.
Q4 2026 to early 2027
Worth checking whether the Asan and Daejeon sites' consolidation into the Sejong facility is completed and whether utilization and production efficiency subsequently improve.
First half of 2027
Under the roadmap laid out in April 2026, this is when it should become clear whether the customer sample-based thermal imaging microscope PoC is completed within the one-year target.
March 2027
The FY2026 annual business report is due, allowing confirmation of whether the gap between operating profit and net income attributable to owners narrows and whether full-year performance actually improves.

Overall view

HB Solution combines a clear weak trend of slowing display equipment revenue and operating losses in three of the last four quarters with an unusual feature of expanding net income attributable to owners that moves independently of operating results.

From 2022 through 2025, annual revenue and operating profit both swung widely, and net income showed even greater volatility, alternating between losses and profits.

The thermal imaging microscope technology licensed from KBSI in April 2026 and the existing Nano-MEIS metrology equipment are the company's key cards for expanding into semiconductor metrology and failure-analysis markets, but the company itself says commercialization will take more time, leaving the timing of any earnings impact uncertain.

Production efficiency gains from the Sejong site consolidation and expanding exposure to Chinese OLED investment are medium-term variables worth monitoring.

On the other hand, high dependence on a small number of customers such as Samsung Display and the large swings in non-operating results remain factors that make earnings difficult to predict.

Ongoing confirmation of a genuine operating-side recovery will require tracking future quarterly disclosures and progress on the new-business roadmap.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.