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HDC Labs · 039570 · Construction

HDC Labs: Thin Margins, Low Price-to-Book and a Wide Range of Model Estimates

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

HDC Labs, a KOSPI construction-sector company, closed at ₩7,320 on 2026-10-20 with a market cap of about ₩190.0B, down 10.5% over one year. Trailing revenue is ₩615.6B with a 2.7% operating margin, and the stock trades at 0.7x book value.

Written Oct 21, 2026 · Data as of Oct 20, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a low-margin business with steady revenue and a low valuation on book value. Trailing P/E is 9.9 versus 17.9 at the end of 2025, and the dividend yield is 6.1%. Trailing ROE of 7.1% is above the 4.6% reported for 2025. Liabilities are 55.6% of equity, and free cash flow of ₩50.1B exceeds trailing net income of ₩19.1B. Against this, operating margins have stayed between 1.0% and 3.5% over five years, and the year-end price-to-book ratio has been between 0.7 and 1.2. The shares are near the low end of their 52-week range (₩7,120 to ₩8,700). Foreign and institutional investors were net sellers over the last 20 days, while retail investors were net buyers. The model range is very wide, which signals high uncertainty.

Business overview

HDC Labs is listed on KOSPI in the construction sector. It was founded on 1999-09-17 and listed on 2015-09-24, and it has 25,957,601 listed shares. Revenue was ₩274.6B in 2021 and rose 122.4% in 2022 to ₩610.7B. It has since stayed in a narrow band: ₩606.3B in 2023, ₩628.8B in 2024 and ₩645.7B in 2025. Recent filings include a corporate value-up plan and a change of representative director, both dated 2026-03-26. The only news headline in the data is an in-house AI competition reported by Edaily on 2026-10-14. The data does not describe the company's business lines.

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Model estimate of fair value

Bear
₩3,156
-57%
Base
₩9,260
+27%
Bull
₩20,413
+181%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 29, 2026Update noteEarningsHDC Labs Q3 2026 Preliminary Results: Operating Profit Nearly Doubles on Lower Revenue
  2. Oct 21, 2026InitiationStart of coverage (reader request)HDC Labs: Thin Margins, Low Price-to-Book and a Wide Range of Model Estimates

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information