KOSDAQFinance440290

HB Investment

₩1,727▲ 0.58%2026-10-02 close

Market Cap

₩47.4B

Turnover

₩9,307,145

Volume

5,411 shares

Shares out.

27.5M

PER

8.5×

PBR

0.5×

EPS

₩205

Dividend Yield

6.86%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩120 per share · Prices as of the 2026-10-02 close

Report overview

After the Dalba Windfall, Earnings Volatility Takes Center Stage

HB Investment has proven its deal-sourcing ability through large exits such as Dalba Global and HPSP, but its quarterly results continue to swing sharply depending on the timing of performance-fee recognition, a structural trait typical of the venture capital industry.

1
In 2025, consolidated revenue reached KRW 17.4 billion, operating profit KRW 7.26 billion, and net income attributable to owners KRW 6.14 billion, expanding from the prior year.
2
Quarterly operating profit spiked to KRW 3.93 billion in 2025Q2 and KRW 2.84 billion in 2026Q2, well above other quarters, reflecting a results structure driven by the timing of performance-fee and equity-method gain recognition.
3
The company fully exited its Dalba Global investment (total KRW 2.2 billion invested in 2020 and 2023) in April 2026, recovering roughly KRW 67.3 billion, a multiple exceeding 30 times the principal.
4
Following the multi-closing of the HB Running Mate Investment Fund (KRW 142.0 billion), total assets under management for the house surpassed KRW 700 billion.
5
Some industry observers note that because performance fees are distributed to limited partners and fund managers before reaching the listed entity, large exits do not automatically translate into a larger dividend pool.

Business structure

HB Investment is a first-generation domestic venture capital firm founded in 1999 that listed on KOSDAQ in January 2024. The company was established as a small and medium enterprise startup investment firm and provides investment financing to small and mid-sized venture companies.

Since forming its first investment fund in 1999, the firm has operated 19 venture investment funds with total committed capital of KRW 691.8 billion, continuously securing investment resources.

Revenue consists mainly of fund management fees, performance fees, and equity-method gains from affiliated portfolio companies, with management fees and equity-method gains providing a stable base while new fund formation supports revenue growth.

The portfolio is diversified across deep-tech and manufacturing (40%), software and services (40%), and bio/healthcare (20%), avoiding concentration in any single sector. Notable portfolio companies include HPSP, Kmong, Millie's Library, Jobis&Villains, Dalba Global, Samyang Comtech, Megagen Implant, and Makinarocks.

In 2024 the firm registered with financial regulators as a general partner for institutional-only private equity funds, expanding into buyout and other private equity territory, and it has also pursued corporate venture capital fund formation in cooperation with the HB Group.

Competitors include listed and unlisted mid-tier VCs such as Capstone Partners, LB Investment, and StoneBridge Ventures, with selection as a general partner in government fund-of-funds programs remaining a key industry-wide variable.

Earnings trend

Quarterly revenue · Operating profit

₩6.6B₩3.9B25Q2₩3.7B₩1.6B25Q3₩4.8B₩1.3B25Q4₩3.2B₩900M26Q1₩4.5B₩2.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩15.9B₩9.3B2022₩20.5B₩10.6B2023₩15.2B₩6.5B2024₩17.4B₩7.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩6.6B	₩3.9B	59.8%
2025Q3	₩3.7B	₩1.6B	44.9%
2025Q4	₩4.8B	₩1.3B	27.6%
2026Q1	₩3.2B	₩900M	27.7%
2026Q2	₩4.5B	₩2.8B	63.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩15.9B	₩9.3B	₩7.5B	58.3%	15.3%	10.0%
2023	₩20.5B	₩10.6B	₩8.9B	51.7%	15.2%	11.8%
2024	₩15.2B	₩6.5B	₩6B	42.9%	6.9%	5.2%
2025	₩17.4B	₩7.3B	₩6.1B	41.7%	6.9%	6.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

Consolidated revenue in 2025 rose to KRW 17.4 billion from KRW 15.15 billion in 2024, with operating profit of KRW 7.26 billion and net income attributable to owners of KRW 6.14 billion.

Operating margin declined from 58.3% in 2022 and 51.7% in 2023 to 42.9% in 2024 and 41.7% in 2025, a pattern consistent with a base effect from the large performance fee generated by the 2023 liquidation of the HPSP project fund.

Indeed, both 2023 revenue (KRW 20.5 billion) and operating profit (KRW 10.6 billion) were the highest among the four years shown, while 2022 was also solid with revenue of KRW 15.9 billion and operating profit of KRW 9.3 billion.

Quarterly results show pronounced volatility: revenue of KRW 6.58 billion and operating profit of KRW 3.93 billion in 2025Q2 and net income to owners of KRW 3.24 billion stood out, before declining through 2025Q3 (revenue KRW 3.66 billion, operating profit KRW 1.64 billion), 2025Q4 (revenue KRW 4.79 billion, operating profit KRW 1.32 billion), and 2026Q1 (revenue KRW 3.18 billion, operating profit KRW 0.88 billion), then rebounding in 2026Q2 to revenue of KRW 4.46 billion, operating profit of KRW 2.84 billion, and net income to owners of KRW 2.34 billion.

This quarter-to-quarter dispersion reflects the accounting characteristics of the VC industry, where equity recoveries and performance-fee recognition for portfolio companies such as Dalba Global tend to concentrate in specific quarters.

Cash flow statements show similar swings, with operating cash flow turning from positive KRW 8.34 billion in 2023 to negative KRW 3.50 billion in 2024 and back to positive KRW 3.68 billion in 2025, driven by differences in fund contribution/recovery timing and cash realization of performance fees.

Equity has grown steadily from KRW 48.9 billion in 2022 to KRW 88.6 billion in 2025, and the debt ratio has stayed low in the 5–12% range, indicating a relatively stable financial structure.

Industry analysis

The domestic venture capital industry remains heavily influenced by government-linked funding channels such as the Korea Venture Investment Corporation's mother fund and Korea Growth Investment, meaning results are closely tied to policy direction.

NH Investment & Securities noted in a June 2025 report that under the new government's stance of expanding VC allocations, the company's fundraising success in the second half was expected, with a virtuous cycle of fund formation and liquidation likely to continue.

More recently, diversification of policy funding channels has been observed, including the Korea Post's selection of multiple general partners through its venture capital allocation program.

Across the industry, the recovery of the IPO market is seen as the key variable determining exit performance for listed VCs; the recent public subscription for Makinarocks, which recorded a competition ratio of 2,807-to-1 and roughly KRW 13.87 trillion in deposits, the highest this year, illustrates renewed IPO market momentum.

At the same time, some observers point out that because performance fees do not fully flow through to a listed VC's free cash flow, capital market valuations can diverge from underlying exit performance.

Compared with peers such as Capstone Partners, HB Investment emphasizes its diversified deep-tech, software, and bio portfolio along with a track record of large exits including HPSP and Dalba Global.

Outlook

The company raised total house-wide AUM above KRW 700 billion in the first half of 2026 through the multi-closing of the HB Running Mate Investment Fund (KRW 142.0 billion), and on that basis presented value-up plan guidance in May targeting an average net internal rate of return of 15% or higher for new funds.

On the exit pipeline, portfolio company Samyang Comtech passed preliminary listing review and is pursuing a KOSDAQ listing, Dope is in preliminary technology assessment, and Kmong is also cited as a listing candidate.

For recently listed Makinarocks, the IPO-price-based market capitalization of roughly KRW 263.3 billion is more than double the KRW 120 billion valuation at the time of HB Investment's original investment, suggesting further gains could be realized upon any share sale.

However, industry sources noted that alongside the large first-half exit (Dalba Global and others), the intensification of external audits in the second half of 2026 could lead to secondary-market sales or write-offs of early-stage portfolio assets with low recovery prospects.

On the fundraising side, a corporate venture capital fund (KRW 40.0 billion) linked with the HB Group has also been pursued, building on the firm's selection as general partner in a Korea Growth Investment allocation program.

The expansion of policy-linked funding and the number of IPO-candidate portfolio companies are favorable variables for future exit performance, though the actual timing of cash realization remains contingent on individual listing schedules and market conditions.

Valuation

PER

8.5×

PBR

0.5×

ROE

6.5%

EPS

₩205

BPS

₩3,258

Dividend per share

₩120

The company's share price has moved within the trading band established since its listing, and it appears to trade at a discount relative to net asset value.

Given the industry's tendency toward large quarter-to-quarter earnings swings, it may be more informative to examine the multi-year pattern of profit recovery and moderation rather than extrapolating a single quarter into one valuation multiple.

On the dividend side, the company has continued to pay a year-end dividend, but industry observers note that because performance fees are distributed to limited partners and fund managers before reaching the listed entity, growth in the dividend pool available to shareholders may not scale proportionally with growth in exit performance.

Equity has expanded steadily since 2022 and the debt ratio has remained low, indicating relatively sound financial stability. Overall, the valuation appears to be a segment where market interpretation could shift depending on the sustainability of exit performance and further clarification of dividend policy.

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 2026-09-05

Bull factors

Proven Track Record of Large Exits

HPSP was a secondary investment of KRW 19.3 billion in 2021 that returned KRW 82.1 billion within two years, while Millie's Library turned a KRW 5.8 billion investment into a KRW 28.6 billion (5x) recovery.

Dalba Global, invested in across 2020 and 2023 for a total of KRW 2.2 billion, generated roughly KRW 67.3 billion (over 30x) upon full exit in April 2026.

Megagen Implant likewise turned a KRW 2.5 billion investment into a KRW 10 billion (4x) recovery, reflecting repeated high-multiple exits across multiple portfolio holdings.

AUM Expansion and Business Diversification

The multi-closing of the HB Running Mate Investment Fund (KRW 142.0 billion) pushed total house AUM past KRW 700 billion, and the firm's selection as general partner in a Korea Growth Investment allocation program has supported pursuit of a corporate venture capital fund linked with the HB Group.

Registration in 2024 as a general partner for institutional-only private equity funds also expanded the business into buyout and other PE territory, seen as a long-term growth driver, with some industry assessments suggesting AUM of KRW 1 trillion could be reached within three years.

Stable Management-Fee-Based Earnings Base

Management fees on affiliated company holdings and equity-method gains provide a stable base, with new fund formation supporting continued revenue growth.

Operating margin exceeded 41% in every year from 2022 through 2025, demonstrating that the company can sustain a substantial margin even from base management fees alone, without relying solely on performance fees.

The portfolio's diversification across deep-tech, software, and bio also mitigates cycle risk tied to any single industry.

Bear factors

Earnings Volatility from Performance-Fee Dependence

Operating profit in 2025Q2 and 2026Q2 was KRW 3.93 billion and KRW 2.84 billion respectively, two to three times higher than other quarters, while 2026Q1 came in at only KRW 0.88 billion, showing very large quarter-to-quarter dispersion.

This reflects the structural characteristic of results being driven by performance fees and equity-method gains concentrated in specific quarters rather than steady management fees, making it difficult to extrapolate future results from any single quarter.

Operating cash flow has also been unstable, flipping from negative KRW 3.50 billion in 2024 to positive KRW 3.68 billion in 2025.

Structural Gap Between Exit Gains and Shareholder Returns

Industry sources have pointed out that because performance fees are first split between limited-partner distributions and fund manager incentives, they do not fully accumulate as free cash flow at the listed entity, creating a structural imbalance.

This raises concerns that large exits may not directly translate into an expanded dividend pool for minority shareholders. Absent a clearly codified dividend policy, this structural gap could persist.

Impairment and Write-off Risk in Early-Stage Portfolio

Industry sources noted the existence of early-stage tech and B2C portfolio companies that have failed to list or suffered capital impairment, and that intensified external audits in the second half could lead to secondary-market fire sales or full write-offs of unrecoverable assets.

Such disposal losses are cited as a factor that could temporarily depress operating margin. If numerous small distressed holdings accumulate without being offset by large exits, this could constrain qualitative improvement in results.

Risk factors

Policy Dependence Risk

New fundraising volume depends heavily on the outcome of general-partner selection by policy allocation institutions such as the mother fund, Korea Growth Investment, and Korea Post.

A change in the government's venture investment promotion stance or a reduction in allocation budgets could negatively affect new fund formation and management fee growth.

Whether the new government's stance toward expanding VC allocations, as referenced by NH Investment & Securities, continues remains an important variable.

Portfolio Exit Risk

Whether and when unlisted portfolio companies achieve an IPO is contingent on market conditions, and any delay or withdrawal of a planned listing could postpone associated exit performance and performance-fee recognition.

Some early-stage investee companies have failed to list or fallen into capital impairment, creating the possibility of impairment losses.

Shareholder Return Structure Risk

Because a significant portion of performance fees is first distributed to limited partners and fund managers, there is a risk that free cash flow accumulation and dividend pool growth at the listed entity level do not scale proportionally with increases in exit performance. This structural risk could persist absent a clearly institutionalized dividend policy.

What to watch next

Around November 2026
Check the preliminary 2026 Q3 results disclosure — whether any remaining Dalba Global stake recovery is reflected and the scale of performance-fee recognition are the key drivers of quarterly variability.
Q4 2026 (year-end audit period)
Check whether the year-end external audit results in impairment or write-offs of early-stage portfolio assets — if the disposal losses flagged by industry sources are recognized, operating margin could temporarily decline.
During the second half of 2026
Monitor whether Samyang Comtech completes its KOSDAQ listing and track the IPO progress of Dope and Kmong to assess how concretely the future exit pipeline is materializing.
During the second half of 2026
Check whether the HB Group-linked corporate venture capital fund (KRW 40.0 billion) completes formation and whether the HB Running Mate Investment Fund undergoes any additional closing, to gauge the pace of AUM expansion.
Early 2027 (upon FY2026 year-end dividend disclosure)
Check how the FY2026 year-end dividend policy is disclosed — a key indicator of whether large exit gains translate into an expanded shareholder dividend.

Overall view

HB Investment has repeatedly demonstrated strong deal-sourcing ability through high-multiple exits from HPSP, Millie's Library, Dalba Global, and Megagen Implant, and its AUM recently surpassed KRW 700 billion in an expansion phase.

However, quarterly results show large dispersion depending on the timing of performance-fee and equity-method gain recognition, making it difficult to extrapolate any single quarter's strength or weakness.

The structure in which performance fees are first distributed to limited partners and fund managers is cited as a factor that may prevent large exits from directly translating into free cash flow and dividend resources at the listed entity level.

IPO-candidate portfolio companies such as Samyang Comtech, Dope, and Kmong, along with potential recovery of remaining stakes in recently listed Makinarocks, are favorable variables for future results, though the possibility of early-stage portfolio impairment from the second-half external audit also warrants attention.

On the financial structure side, steadily growing equity and a low debt ratio point to relatively sound stability. Investors should track the timing of exit pipeline materialization, whether dividend policy becomes more clearly codified, and the scale of any impairment recognition.

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.