[Click eStock] "HB Solution, Growth Potential Expected from Major Client QD Investment"

[Asia Economy Reporter Hyunseok Yoo] Hanwha Investment & Securities analyzed on the 12th that HB Solution could benefit from the QD (Quantum Dot) display investments by its major clients. No investment opinion or target price was provided.

Dongha Kim, a researcher at Hanwha Investment & Securities, shared his impressions after a CEO meeting with HB Solution, stating, "Significant progress is being made with clients regarding inkjet technology," and added, "Color filter inkjet equipment is expected to be delivered to clients early next year, and it appears to have a competitive edge over rivals."

He explained, "With the ability to perform deposition using inkjet, HB Solution is also entering the post-process module market, which has substantial market potential," and continued, "There is a high possibility of purchase orders for inkjet equipment (color filter, TFE, post-process module) from the end of this year to early next year." He further noted, "Especially for post-process module equipment, all companies could become clients, and existing equipment replacement is also possible, making it a very large market. Significant growth is expected if major clients invest (QD or QNED)."

He also gave a positive evaluation of Nanomice, equipment that measures wafer thickness. He said, "The semiconductor measurement equipment market has a strong demand for localization due to the intensifying trend of thin film miniaturization and concerns over technology leakage by clients," and assessed, "HB Solution's Nanomice has strengths such as non-destructive testing of samples, short analysis time, and providing reference points through absolute evaluation."

He added, "Most thickness measurement devices are foreign-made, but due to delivery issues caused by COVID-19, domestic companies are gaining increased interest from clients," and explained, "For analytical laboratory equipment, after setup with domestic clients is completed, sales efforts are underway with other domestic and foreign companies. Inline equipment is in demand by all domestic companies, so business visibility is expected to improve starting next year."

He emphasized, "Next year's performance is expected to reach sales of 200 billion KRW and operating profit of 30 billion KRW," and stated, "Growth potential could be further highlighted as new businesses become visible. Although there are still market doubts, concerns will be dispelled once tangible results emerge."