KOSDAQ · 297890 · Machinery · ₩297890

HB SolutionHB솔루션

297890 · KOSDAQ · ₩297890 · HB솔루션

₩1,447▲ ₩4 (0.28%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩224

vs the current price (₩1,447)

Enterprise value: −₩15B
Equity value: ₩16B
WACC: 7.9%

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

Why the model and the price differ

The model is 84% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩1,447, the model needs an operating margin of 32.5% every year (it uses 7.5%).
Margins ranged from 1.4% to 14.7% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
100% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
Today's P/E is 2.3× against a typical 7.8× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩130; −91.0%
Base: ₩224; −84.5%
Bull: ₩416; −71.2%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (7.5%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-30.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-30.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-30.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-30.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-30.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin7.5%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.5%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending33.9%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital10.2%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.7
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.56, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.58%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩38B
Net debt (borrowings and leases − cash and deposits): −₩28B
+ Stakes and investments: ₩4.5B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩1B
Shares: 73,140,914
Share price: ₩1,447
Market cap: ₩106B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩96B	₩132B	₩63B	₩34B	₩32B	₩30B	₩30B	₩31B
Growth	−48.7%	36.8%	−52.2%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩6.8B	₩19B	₩4.4B	₩2.5B	₩2.4B	₩2.3B	₩2.3B	₩2.3B
EBIT margin	7.0%	14.7%	7.0%	7.5%	7.5%	7.5%	7.5%	7.5%
After-tax EBIT	₩4.9B	₩14B	₩3.2B	₩1.8B	₩1.7B	₩1.7B	₩1.7B	₩1.7B
+ Depreciation	₩1.1B	₩1B	₩1.6B	₩507M	₩473M	₩457M	₩456M	₩469M
− Capital spending	₩907M	₩76B	₩27B	₩11B	₩11B	₩10B	₩10B	₩11B
− Working capital	₩8.4B	−₩17B	₩3.8B	−₩383M	−₩231M	−₩113M	−₩6.2M	₩93M
Free cash flow	−₩3.3B	−₩44B	−₩26B	−₩8.7B	−₩8.3B	−₩8.1B	−₩8.2B	−₩8.5B
Discount factor	—	—	—	0.927	0.858	0.795	0.737	0.683
Present value	—	—	—	−₩8.1B	−₩7.1B	−₩6.4B	−₩6B	−₩5.8B

Terminal value ₩27B, worth ₩19B today: -126% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩3,758 a share)Now 0.39×	₩2,1310.57×	₩6,0911.62×	₩12,2103.25×
Price / earnings (last 12 months: ₩632 a share)Now 2.29×	₩2,3133.66×	₩4,9137.78×	₩14,10522.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩928 a share)Now 1.56×	₩3,3973.66×	₩7,2157.78×	₩20,71322.3×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
6.9%	₩227	₩250	₩278	₩313	₩356
7.4%	₩206	₩226	₩248	₩276	₩309
7.9%	₩190	₩206	₩224	₩246	₩273
8.4%	₩176	₩190	₩205	₩223	₩245
8.9%	₩165	₩176	₩189	₩204	₩222

Now (TTM)

Market cap: ₩106B
Enterprise value: ₩78B
P/E: 2.3×
P/B: 0.4×
P/S: 2.8×
EV/EBITDA: —
Dividend yield: 2.1%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,100	₩2,705	₩5,290	₩3,039	₩5,453
Market cap	₩154B	₩198B	₩387B	₩222B	₩399B
P/E	5.8×	—	5.1×	5.1×	65.6×
P/B	0.6×	0.9×	1.7×	1.6×	3.8×
P/S	2.4×	1.5×	4.0×	1.2×	8.5×
EV/EBITDA	22.9×	7.6×	43.2×	6.6×	252.3×
Dividend yield	1.4%	1.1%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
HB Solution	2.3×	0.4×	2.8×	—	2.1%
Doosan Enerbility	217.2×	4.8×	2.2×	—	0.0%
Hanmi Semiconductor	87.4×	26.0×	35.2×	78.7×	0.4%
Jusung Engineering	1,189.7×	14.6×	38.2×	2,291.7×	0.0%
Rainbow Robotics	4,610.6×	59.1×	174.0×	—	0.0%
EO Technics	47.5×	6.9×	11.6×	—	0.0%
Wonik IPS	28.2×	4.5×	5.3×	42.7×	0.2%
Similar companies (median)	152.3×	10.7×	23.4×	78.7×	0.0%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: HB Solution / HB솔루션 / 297890 / KRX:297890

Source: KRX statistical information