Valuation Update With 7 Day Price Move • May 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩2,715, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 30x in the Semiconductor industry in South Korea. Total loss to shareholders of 20% over the past three years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩1,802, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 22x in the Semiconductor industry in South Korea. Total loss to shareholders of 46% over the past three years. Announcement • Feb 24
HB SOLUTION Co., Ltd., Annual General Meeting, Mar 26, 2026 HB SOLUTION Co., Ltd., Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 77-26, yeonamyulgeum-ro, eumbong-myeon, chungcheongnam-do, asan South Korea Buy Or Sell Opportunity • Jan 19
Now 26% overvalued Over the last 90 days, the stock has fallen 19% to ₩2,235. The fair value is estimated to be ₩1,768, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Earnings per share has declined by 63%. Buy Or Sell Opportunity • Jan 02
Now 28% overvalued Over the last 90 days, the stock has fallen 23% to ₩2,240. The fair value is estimated to be ₩1,754, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Earnings per share has declined by 63%. New Risk • Dec 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩147.7b (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩147.7b market cap, or US$99.9m). Buy Or Sell Opportunity • Nov 29
Now 23% overvalued The stock has been flat over the last 90 days, currently trading at ₩2,215. The fair value is estimated to be ₩1,794, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Earnings per share has declined by 63%. New Risk • Mar 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.2% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Feb 22
HB SOLUTION Co., Ltd., Annual General Meeting, Mar 26, 2025 HB SOLUTION Co., Ltd., Annual General Meeting, Mar 26, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 77-26, yeonamyulgeum-ro, eumbong-myeon, chungcheongnam-do, asan South Korea Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩3,195, the stock trades at a trailing P/E ratio of 15.6x. Average trailing P/E is 17x in the Semiconductor industry in South Korea. Total loss to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,360, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 14x in the Semiconductor industry in South Korea. Total loss to shareholders of 56% over the past three years. New Risk • Dec 02
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 15% Last year net profit margin: 47% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (15% net profit margin). Shareholders have been diluted in the past year (5.7% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩3,055, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 14x in the Semiconductor industry in South Korea. Total loss to shareholders of 37% over the past three years. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩5,360, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 21x in the Semiconductor industry in South Korea. Total loss to shareholders of 20% over the past three years. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩8,390, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 24x in the Semiconductor industry in South Korea. Total returns to shareholders of 50% over the past three years. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩8,480, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 23x in the Semiconductor industry in South Korea. Total returns to shareholders of 108% over the past year. Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩7,570, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 26x in the Semiconductor industry in South Korea. Total returns to shareholders of 117% over the past year. New Risk • Apr 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). High level of non-cash earnings (43% accrual ratio). Minor Risk Shareholders have been diluted in the past year (6.0% increase in shares outstanding). Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩5,110, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 23x in the Semiconductor industry in South Korea. Total returns to shareholders of 26% over the past year. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩4,565, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 19x in the Semiconductor industry in South Korea. Total returns to shareholders of 27% over the past year. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩4,325, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 19x in the Semiconductor industry in South Korea. Total returns to shareholders of 37% over the past year. New Risk • Jan 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩6,000, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 18x in the Semiconductor industry in South Korea. Total returns to shareholders of 86% over the past year. Upcoming Dividend • Dec 20
Upcoming dividend of ₩37.50 per share at 0.8% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 26 April 2024. Payout ratio is a comfortable 6.5% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (1.0%). Announcement • Aug 23
HB SOLUTION Co., Ltd. announced that it has received KRW 40 billion in funding from HB Technology CO.,LTD. HB Solution Co.,Ltd. announced a private placement of the 1st bearer type unsecured privately placed convertible bonds for gross proceeds of KRW 40,000,000,000 on August 22, 2023. The transaction will include participation from returning investor HB Technology CO.,LTD. for 14,614,292 shares for 22.37% stake and individual investor Jaewon Lee for 231,056 shares for 0.35% stake. The bonds carry coupon rate and maturity rate of 0% and will mature on October 22, 2026. The bonds are fully convertible into common shares at a conversion price of KRW 3,616 per share from August 22, 2023 to September 22, 2026. The transaction has been approved by the shareholders of the company. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩4,595, the stock trades at a trailing P/E ratio of 6.6x. Average forward P/E is 16x in the Semiconductor industry in South Korea. Total returns to shareholders of 34% over the past year. New Risk • Jul 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 28% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩19,410, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 59% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩26,094 per share. Buying Opportunity • Mar 29
Now 20% undervalued Over the last 90 days, the stock is up 42%. The fair value is estimated to be ₩21,658, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 67% over the last 3 years. Earnings per share has grown by 101%. Revenue is forecast to grow by 28% in 2 years. Earnings is forecast to decline by 35% in the next 2 years. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩15,800, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 8x in the Semiconductor industry in South Korea. Total loss to shareholders of 18% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩26,393 per share. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Jun 16
HB Solution Co.,Ltd. (KOSDAQ:A297890) announces an Equity Buyback for KRW 5,000 million worth of its shares. HB Solution Co.,Ltd. (KOSDAQ:A297890) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares pursuant to a contract with Mirae Asset Securities Co., Ltd. The purpose of the share repurchase is stock price stability and shareholder value enhancement. The repurchase program will expire on December 15, 2022. As of June 14, 2022, the company had no shares within scope available for dividend and had 1,917 shares in treasury through other repurchase. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Buying Opportunity • Apr 01
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ₩24,546, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 80% over the last year. Earnings per share has declined by 37%. Buying Opportunity • Jan 21
Now 23% undervalued Over the last 90 days, the stock is up 9.3%. The fair value is estimated to be ₩25,103, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.9% per annum over the last 3 years. Earnings per share has declined by 65% per annum over the last 3 years.