Uridul Hu Brain Reports 34.6 Billion KRW Investment Returns This Year: "Value Investing Effective"

[Asia Economy Reporter Hyunseok Yoo] Wooridul Hubrain has achieved investment and valuation gains amounting to 30% of the company's market capitalization this year, earning high returns as a value stock discovery investment firm.

The comprehensive medical leading company Wooridul Hubrain announced on the 27th that it recorded investment income of 18.7 billion KRW and remaining investment asset valuation gains of 15.9 billion KRW, achieving a total of 34.6 billion KRW in investment and valuation gains. This amount approaches 30% of Wooridul Hubrain's market capitalization based on the closing price on the 24th.

Wooridul Hubrain realized excellent investment returns by investing in the bio company ‘Naturecell’, the shareholder ‘Bucket Studio’ of the virtual asset exchange ‘Bithumb’, and ‘Syswork’, a subsidiary of the diagnostic kit specialist ‘BBB’.

At the end of last year, Wooridul Hubrain acquired 10 billion KRW worth of convertible bonds (CB) from ‘Bucket Studio’ and sold all of them on the market on the 23rd, achieving a disposal profit of 16.6 billion KRW, nearly 166% of the investment amount. The disposal profit from the bond with warrants (BW) of ‘Syswork’, a subsidiary of ‘BBB’, also recorded about 1 billion KRW, achieving a 32.9% return. These total investment gains of Wooridul Hubrain are expected to be reflected as non-operating income for the year.

The current valuation gains of the remaining investment assets also reach 15.9 billion KRW. The CB valuation gain of ‘Aprogen MED’, acquired in October last year, amounts to 12.7 billion KRW, about 42.3% of the principal, and the broadcasting transmission company ‘KMH’ has recorded a return of 50.1% (approximately 1.3 billion KRW).

Since Wooridul Hubrain also holds a 14.0% stake in ‘BBB’, the company expects that the value of its holdings will significantly increase once ‘BBB’ begins its full-scale listing on KOSDAQ.

A company official said, “BBB has recently signed a 15 billion KRW supply contract for COVID-19 diagnostic kits with a listed company in Mongolia, showing continuous sales expansion. As BBB actively responds to expanding countries using its diagnostic kits and various demands, it is showing a positive outlook for future corporate value growth, which is expected to increase the value of Wooridul Hubrain’s holdings as well.”

He added, “Aprogen MED is an affiliate of ‘Aprogen’, which has been recognized with a corporate value exceeding 1 trillion KRW, and is focusing on R&D (research and development) for successful new drug development.”

Wooridul Hubrain plans to use the profits earned from investments as resources to expand competitiveness in pharmaceuticals and medical devices and for growth-oriented value investment funds. In the third quarter, Wooridul Hubrain completed the absorption merger of ‘J&SPHAM’ and ‘H Bio & Company’, acquired in March this year, and aims to achieve profitability and stability next year.

A company official stated, “Wooridul Hubrain pursues both stability and profitability in the M&A market by forming technology and value investment funds through ‘Demian Investment Association’ and ‘BKL Investment Association’. We will continuously discover promising investment destinations and maximize investment efficiency,” he added.