HLB Innovation is built on two pillars. Its long-standing core business is lead frames (for automotive electronics and industrial use) - the thin metal skeleton that mounts and fixes a semiconductor chip and connects it to external circuitry - and essentially all current revenue comes from here (about ₩32.3 billion in 2025, ₩9.4 billion in Q1). The other pillar is CAR-T drug development at Verismo, the U.S. subsidiary brought in during 2024, giving a structure in which lead frames generate the revenue while the bio side spends the money. The May 15 quarterly report confirmed Q1 revenue of ₩9.4 billion (+25.1%), and the June 1 amended business report formalized 2025 revenue of ₩32.3 billion and an operating loss of ₩37.6 billion; in May, securities issuance results secured operating funds for Verismo. What stands out lately is a set of strengths - core lead-frame revenue reviving on both a quarterly and annual basis, a P/B of 1.78x below the industry median (2.37x), and a separate growth axis in CAR-T - set against the fact that most of the losses come from the bio side, that clinical outcomes hinge heavily on success, delay, or failure, and that cash has continued to flow out, so financial headroom needs watching.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 27.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 25.1% higher than a year earlier.
- ROE is -15.8% (controlling-interest basis). It is below the sector average.
- Operating margin is -116.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder HLB 17.73% (individual)
Controlling bloc incl. related parties 36.58%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- This company earns money in two ways.
- The first is its long-standing core business, semiconductor lead frames.
- A lead frame is the thin metal skeleton that mounts and fixes a semiconductor chip and electrically connects it to external circuitry, and it goes into automotive-electronics and industrial components.
- Essentially all current revenue (about ₩32.3 billion in 2025, ₩9.4 billion in Q1 2026) comes from this manufacturing business.
- The second is CAR-T drug development at Verismo Therapeutics, the U.S. subsidiary brought in during 2024.
- CAR-T is a therapy that re-engineers a patient's immune cells to attack cancer, and Verismo is developing a next-generation platform (the SynKIR line) targeting solid tumors and relapsed or refractory blood cancers at the clinical stage.
- In short, it is a two-pillar structure in which lead frames generate the revenue while the bio side spends money to grow value.
- The latest close is ₩12,240 and the market capitalization is ₩388.7 billion.
- The price sits below its 20-day moving average (₩12,674) and its 60-day line (₩13,384).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the last 14 days on a 0-100 scale) is 45.8, a neutral level.
- The one-month change is -11.7%, the three-month change is +164.9%, and it stands -53.5% below its 52-week high.
- Its relative strength versus the KOSDAQ is 99 (1-99, converting the past year's return relative to the index with more weight on recent performance; higher means stronger than the market), which places it in roughly the top 1% of all stocks by strength.
- Over the past three months it led the index by 263.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E ratio (how many times a year's profit the price represents) cannot be calculated because the company is loss-making.
- The P/B (how many times per-share net asset value the price represents) is 1.85x, below the industry median (2.37x), meaning it is priced below the industry average on an asset-value basis.
- The ROE (how much is earned in a year on shareholders' equity) is -15.8% and the operating margin is -116.4%, so it currently spends more than it earns - but the nature of the loss has to be parsed.
- Core lead-frame revenue is growing, while the R&D spending on drug trials following the Verismo acquisition is what has widened the loss.
- In other words, the current loss stems less from a broken core business and more from investing early in a future business.
- The debt-to-equity ratio is 127.7% and the current ratio (assets convertible to cash within a year divided by debt due within a year) is about 103%, on the tight side, so the longer the trials run, the more financial headroom should be watched alongside.
- Five-year revenue ran ₩38.3 billion in 2021, ₩50.7 billion in 2022, ₩20.6 billion in 2023, ₩25.4 billion in 2024, and ₩32.3 billion in 2025.
- It dropped sharply once in the middle and has been climbing clearly again over the past two years (a two-year revenue CAGR of about 25%, +27.2% year on year).
- Most recently, Q1 2026 revenue reached ₩9.4 billion, up 25.1% year on year, so the core-business recovery is carrying through on a quarterly basis as well.
- The strength behind the returning revenue comes from automotive-electronics and industrial lead-frame demand and a recovery in utilization.
- By contrast, the operating result went from -₩0.9 billion in 2023 to -₩11.9 billion in 2024 to -₩37.6 billion in 2025, a widening loss - but this is due to rising R&D spending from the early bio investment, not a deteriorating core business.
- This stock's growth is therefore best read by tracking two separate threads: the pace of the core-business revenue recovery and the progress of Verismo's trials.
- The company has not put out an official earnings forecast, so this year's profit level is hard to state with certainty, but the revenue-recovery trend itself is clearly confirmed in the quarterly results.
- Recent disclosures split into two threads.
- One is routine results confirmation.
- The May 15, 2026 quarterly report (2026.03) confirmed Q1 revenue of ₩9.4 billion (+25.1% year on year), and the June 1 amended business report formalized 2025 annual revenue of ₩32.3 billion and an operating loss of ₩37.6 billion.
- The other is the funding and governance flow of the bio business.
- The May 15 securities issuance results (voluntary disclosure) wrapped up a new-share issue, a capital raise that feeds into securing operating funds for Verismo.
- From May to June, filings on officers' and major shareholders' holdings and large-holding reports were submitted repeatedly, showing shifts in the largest shareholder's stake, and on June 5 an IR (investor briefing) disclosure showed the company arranging a setting to explain its business status directly.
- The strengths are clear.
- Core lead-frame revenue is reviving on both a quarterly and annual basis, and on an asset-value basis the P/B (1.78x) is below the industry median (2.37x), so even looking at the component core business alone it is not priced expensively.
- On top of this sits a separate growth axis in the U.S.
- CAR-T subsidiary, so it carries both the core-business recovery and the bio expectation together.
- The cautions are equally clear.
- Almost all revenue comes from manufacturing but most of the loss comes from the bio side, so lumping the two under one yardstick makes it easy to miss what is actually happening.
- Trial value diverges sharply with success, delay, or failure, and cash keeps flowing out over that period, so financial headroom must be watched.
- In sum, this company is strong when the core-business revenue recovery continues, Verismo's trials advance, and funding rolls along without strain, and weaker when trials are delayed or core-business profit alone cannot cover the costs.
- The key is to check core-business revenue and trial progress and funding headroom separately.
🔎 Valuation vs peers Inconclusive
Because this company blends lead-frame manufacturing with a CAR-T bio subsidiary - a component maker by revenue, but with bio the variable that moves value - the peer set uses names within the same HLB family that carry a large bio weight, viewed together with a component-maker yardstick for the core business alone.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HLB | — | 15.95x | -52.69% |
| HLB Life Science | — | 1.30x | -33.56% |
| HLB Therapeutics | — | 1.31x | -6.14% |
(a) Position: with a loss-making top line, a P/E comparison is impossible, and a P/B of 2.10x sits within the HLB family between HLB (15.09x), where bio expectations are highest, and the plainer affiliates (in the 1.2-1.4x range). In other words, slightly above a pure component maker and well below a flagship bio name. (b) Premium/discount: taking the lead-frame core alone, it is hard to award a large premium to a loss-making component maker, but the market appears to add part of Verismo's CAR-T potential value, pricing it above the core-business value. (c) Limits of trailing: last year's confirmed results are loss-making, so there is no P/E, and even this year's revenue is only a seasonality approximation (about ₩39.7 billion) with profit not estimated. With the timing of a core-business swing to profit and clinical outcomes both in play at once, it is hard to declare it cheap or expensive from a single line of numbers, so the verdict is set to Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩10.4 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩12,240 and the market capitalization is ₩388.7 billion. The price sits below its 20-day moving average (₩12,674) and below its 60-day moving average (₩13,384). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 45.8, a neutral level. The one-month change is -11.7%, the three-month change is +164.9%, and the position relative to the 52-week high is -53.5%. Relative strength versus the KOSDAQ is 99 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 99% of all stocks. Over the past three months it outpaced the index by 263.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +263.65% / 6M +627.75% / 12M +553.29%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.85x is in line with the sector median (1.63x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -15.8%, below the sector average (7.0%). The operating margin is -116.4%. The debt ratio is 127.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $13.6M | $16.8M | $21.4M | +27.24% ↑ faster |
| Operating profit | -$621,409 | -$7.9M | -$24.9M | — |
| Net profit | -$500,665 | -$8.2M | -$22.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $25.4M | $33.6M | $13.6M | $16.8M | $21.4M |
| Operating profit | -$1.8M | $561,735 | -$621,409 | -$7.9M | -$24.9M |
| Net profit | -$2.5M | -$559,303 | -$500,665 | -$8.2M | -$22.1M |
| Revenue CAGR | 4-yr avg -4.21% | ||||
Revenue rose 27.2% year over year (2023 ₩20.6 billion → 2024 ₩25.4 billion → 2025 ₩32.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.2%. The two-year revenue CAGR is 25.2%. In the most recent quarter (Q1 2026), revenue was 25.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 27.2% year over year, a sign of growth.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-06-09UpdateLarge-holding report (general) submitted - disclosure of changes in the largest shareholder's stakeIn the short term this is a governance and supply-demand signal, and in the mid term it is material for gauging the largest shareholder's commitment to the company. During a period of early bio investment, the flow of the major shareholder's stake should be read together with funding and governance stability. Source
- 2026-06-05IRIR (investor briefing) disclosure - a setting arranged for the company to explain its business and results directlyAn opportunity to confirm the business direction (the lead-frame core plus the Verismo bio) through the company's official channel. It is meaningful for checking figures on the company's own basis rather than outside estimates. Source
- 2026-05-15EarningsQuarterly report (2026.03) submitted - Q1 2026 revenue of ₩9.4 billion (+25.1% year on year) confirmedThe core-business revenue recovery is confirmed on a quarterly basis, while the operating result carries a large loss due to bio R&D spending. Revenue growth and the earnings burden must be read together. Source
- 2026-05-15FilingSecurities issuance results (voluntary disclosure) - funding results following the completion of a new-share issueGiven the nature of a bio business with ongoing trials, securing operating funds is a key variable. A new-share issue fills funds while also being a potential dilution factor for existing shareholders, so it must be viewed from both sides. Source
- 2026-06-01Filing[Amended] Business report (2025.12) - 2025 annual confirmed results (revenue ₩32.3 billion, operating loss ₩37.6 billion) formalizedA document that shows this company's two faces together in one report - annual revenue growth (+27.2%) and a widening operating loss. It must be read by distinguishing whether the source of the loss is the core business or bio. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09OwnershipOwnership-change filing
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-05Disclosure
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01PeriodicAnnual business report (amended)
- 2026-05-29Disclosure
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-11OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.