HDC Labs earns its revenue across three lines: Life Solution, which supplies apartment home-network and IoT systems; Construction Solution, which designs and installs intelligent building systems; and Realty, which handles facility management for completed buildings. The highly recurring facility-management business is the largest, at roughly 46% of cumulative 2025 revenue. In March the company disclosed a new supply contract and a corporate value-up plan, and its May quarterly report confirmed a sharp first-quarter profit rebound in which earnings rose even as revenue fell. What stands out is that improving profitability, a substantial shareholder return with a dividend yield of about 6% and an 84% payout ratio, and a P/B of 0.72x are real strengths, while the still-thin absolute level of profit (ROE of 4.6% and an operating margin of 1.7%) and the sensitivity of the largest revenue lines to the domestic construction cycle need to be checked quarter by quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.9% lower than a year earlier.
- ROE is 4.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.7%.
Ownership & governance As of 2025-12-31
Largest shareholder HDC 39.99% (corporate)
Controlling bloc incl. related parties 62.69%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- HDC Labs does not run a single business but earns money along three lines.
- First, Life Solution (smart home) makes and supplies the home-network and IoT systems that go into apartments and houses (wall pads and apps that control lighting, heating and cooling, ventilation and security from one place).
- Second, Construction Solution (smart building) is a systems-integration (SI) business that designs and installs intelligent building systems such as information/communications, automated control, integrated security and energy management.
- Third, Realty operates the facility management (FM) and comprehensive property management of completed buildings and complexes.
- Over the first three quarters of 2025, Realty was the largest at about 46% of revenue, followed by Construction Solution at about 31% and Life Solution at about 23%.
- Rather than a company that simply sells devices, it is closer to one that attaches itself to the entire flow of building, fitting out and managing apartments and buildings.
- Facility management in particular tends to recur every year once a contract is won, which gives revenue a steady character.
- Continuing to supply home networks to the I-Park complexes of its de facto parent, HDC Hyundai Development, is another pillar of revenue.
- The latest close is ₩7,610 and market capitalization is ₩197.5 billion.
- The price sits below the 20-day line (₩7,637) and below the 60-day line (₩7,895).
- Being under both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that scores the strength of gains versus declines over the past 14 days on a 0-100 scale) is 47.0, a neutral level.
- The one-month change is -3.2%, the three-month change is -6.0%, and the position versus the 52-week high is -23.5%.
- Relative strength against the KOSPI is 19 (on a 1-99 scale, converted from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 81% of all stocks by strength.
- Over the past three months it lagged the index by 24.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/B (how many times the price is of the company's book net assets) is 0.74x, meaning the shares trade below even the company's net assets.
- The balance sheet is solid: the debt ratio (debt relative to equity) is 165%, not heavy for the peer group, and with a current ratio of 166% and interest coverage of 4.8x there is ample capacity to service debt.
- The most notable feature is the dividend, at ₩450 per share for a yield of about 6% and a payout ratio (the share of net profit distributed as dividends) of 84%.
- The P/E (how many times the price is of one year's profit) is 15.7x on last year's confirmed earnings, but that figure uses last year's depressed results as-is.
- Because profit turned around sharply in the first quarter, the forward P/E on this year's expected earnings falls to about 12x, so the real valuation is lighter than last year's number makes it look.
- For a company whose earnings are turning up, this year's P/E is closer to the true picture than last year's.
- That said, ROE (how much is earned in a year on shareholders' equity) of 4.6% and an operating margin of 1.7% mean the absolute level of profit is still thin, and that should be taken at face value.
- Revenue has edged higher each year and is stable: ₩606.3 billion in 2023, ₩628.8 billion in 2024 and ₩645.7 billion in 2025 (+2.7% year over year), while profit has been uneven due to the timing of quarterly contract recognition.
- The key change is the most recent quarter.
- First-quarter 2026 revenue was ₩148.1 billion, down 8.9% year over year, yet operating profit was ₩7.2 billion (+142%) and net profit ₩6.8 billion (+158%), both surging.
- Profit rising sharply even as revenue fell means a genuine shift in the business mix is under way, cutting thin-margin work and raising the weight of higher-return activities (recurring facility management and higher-value-added smart home and SI).
- This is also the basis for this year's expected earnings being set clearly higher than last year's.
- It is not a single quarter's luck but a shift of the center of gravity toward a business mix that leaves profit even when revenue slips, confirmed in the first-quarter numbers.
- The forward P/E that reflects this recovery is lower than last year's, suggesting the price has not yet caught up to the earnings inflection.
- Several official disclosures followed in 2026.
- In March the company signed a new single supply contract, confirming its order base, and in the same month voluntarily disclosed a corporate value-up plan in line with Korea Exchange rules, setting out a direction for enhancing shareholder value.
- In April it disclosed preliminary full-year 2025 results, and the May quarterly report confirmed the sharp first-quarter profit rebound in figures.
- In June it disclosed its corporate governance report.
- A change of CEO was also announced at the March annual general meeting, completing a leadership handover.
- Overall it is a period in which a theme of profitability recovery plus shareholder-return and governance housekeeping stands out clearly through the disclosures.
- This is a stock with clear strengths.
- First, profitability is genuinely improving, as seen in a first quarter where profit rose even as revenue fell.
- Second, there is a substantial shareholder return with a dividend yield of about 6% and an 84% payout ratio.
- Third, on top of a stable balance sheet in terms of debt and liquidity, the P/B of 0.72x means the price is below net assets.
- That this year's P/E falls to about 12x, below last year's number, also reads as a signal that the price is not expensive at a point where earnings are turning up.
- There are things to watch, too.
- With ROE of 4.6% and an operating margin of 1.7%, the absolute level of profit is still thin, so whether profitability thickens further needs checking each quarter, and the largest revenue lines, Construction Solution and Realty, are businesses exposed to the domestic construction cycle.
- In short, in a phase where profitability keeps improving and the recurring revenue base holds, a low P/B and high dividend support the downside and work strongly; conversely, if construction demand falls sharply and the earnings recovery wobbles, the thin margin comes to the fore as a weakness.
- It is a stock whose strengths and weaknesses are clearly divided.
🔎 Valuation vs peers Fairly valued
Rather than a pure construction firm, this is a combined smart-home, building systems-integration (SI) and facility-management (FM) operator, so listed IT-services and information-services companies observable on the site are used as a reference peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DB | 6.02x | 0.66x | 10.94% |
| Hecto Innovation | 5.59x | 0.77x | 13.73% |
Looked at on P/E of 16.6x alone, it seems expensive versus the IT-services reference peers (DB and Hecto Innovation at 6-8x), but that P/E is on last year's confirmed (trailing) earnings, which were depressed, and trailing multiples are prone to overstate value at an earnings inflection. On a forward basis reflecting the sharp first-quarter profit rebound, the multiple moves lower, while a P/B of 0.76x below net assets and a dividend yield of 5.8% support the downside. On the other hand, ROE (4.6%) and margins below the peer set are clear discount factors. With strengths (high dividend, low P/B, recovering profitability) offset by weaknesses (low absolute profitability, sensitivity to the construction cycle), it reads as Fairly valued rather than one-sidedly cheap or expensive.
Price history Close · MA20 · MA60
The latest close is ₩7,610 and the market capitalization is ₩197.5 billion. The price sits below its 20-day moving average (₩7,637) and below its 60-day moving average (₩7,895). 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 47.0, a neutral level. The one-month change is -3.2%, the three-month change is -6.0%, and the position relative to the 52-week high is -23.5%. Relative strength versus the KOSPI is 19 (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 19% of all stocks. Over the past three months it lagged the index by 24.3%. 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 -24.34% / 6M -42.47% / 12M -66.75%
Key metrics vs sector median
Valuation
The P/E of 16.11x is above the sector median (7.73x). The P/B of 0.74x is in line with the sector median (0.79x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 4.6%, below the sector average (9.0%). The operating margin is 1.7%. The debt ratio is 165.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $401.8M | $416.8M | $428.0M | +2.69% ↓ slower |
| Operating profit | $7.0M | $4.2M | $7.1M | +66.16% ↑ faster |
| Net profit | $8.7M | $12.6M | $8.1M | -35.38% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $182.0M | $404.8M | $401.8M | $416.8M | $428.0M |
| Operating profit | $6.4M | $8.2M | $7.0M | $4.2M | $7.1M |
| Net profit | $6.0M | $8.2M | $8.7M | $12.6M | $8.1M |
| Revenue CAGR | 4-yr avg 23.84% | ||||
Revenue rose 2.7% year over year (2023 ₩606.3 billion → 2024 ₩628.8 billion → 2025 ₩645.7 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 66.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 23.8%. The two-year revenue CAGR is 3.2%. In the most recent quarter (Q1 2026), revenue was 8.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.9%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-16UpdateDisclosed a new single supply contract, confirming its order base.In the short term it improves revenue visibility, and in the medium term it is a stabilizing factor that supplements the order backlog amid a slowing construction cycle. Source
- 2026-03-26FilingVoluntarily disclosed a corporate value-up plan in line with Korea Exchange rules, setting out a direction for enhancing shareholder value.In the medium term it signals a commitment to shareholder returns and improved capital efficiency, assessed together with the sustainability of the high-dividend policy. Source
- 2026-03-26FilingA change of CEO (representative executive officer) was made at the annual general meeting, marking a management handover.In the medium term it is a variable for gauging the continuity of and change in business and shareholder-return strategy. Source
- 2026-04-24EarningsDisclosed preliminary consolidated 2025 operating results (revenue ₩645.7 billion, operating profit ₩10.6 billion, net profit ₩12.3 billion).Operating profit recovered year over year, but net profit fell against a one-off strong 2024, confirming the volatility of earnings. Source
- 2026-05-15EarningsThe first-quarter 2026 report confirmed a sharp profit rebound, with operating profit of ₩7.2 billion (+142%) and net profit of ₩6.8 billion (+158%) amid revenue of ₩148.1 billion (-8.9%).It is the core basis for the short-term improvement in profitability and works to lower the valuation on this year's expected earnings. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2023-2025 revenue, operating profit and net profit | revenue 2025 6,457/2024 6,288/2023 6,063, operating profit 106/64/105, net profit 123/190/132 | revenue 645,728/628,808/606,282, operating profit 10,637/6,402/10,513, net profit 12,263/18,976/13,163 | Confirmed | link |
| First-quarter 2026 preliminary results | revenue 1,481(-8.9%), operating profit 72(+142%), net profit 68(+158%) | — | Confirmed | link |
| P/E on this year's expected earnings | approx. 12.7x(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-21EarningsEarnings disclosure
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-16Single supply/sales contract
- 2026-03-13Audit report
- 2026-02-26Large-business-group status disclosure
📖 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.