[Click eStock] "HB Investment, Stable Returns Through Multi-Sector Investment"

Scheduled to be listed on the 25th

On the 11th, Eugene Investment & Securities evaluated HB Investment as "securing stability through clear investment principles and multi-sector investment, and expecting high profitability and continuous growth." HB Investment is a venture capital (VC) firm providing investment financing to small and venture companies and is scheduled to newly list on the KOSDAQ market on the 25th.

On the same day, researcher Park Jong-sun of Eugene Investment & Securities cited three investment points of HB Investment: ▲ stability through clear investment principles and multi-sector investment ▲ high profitability through exit strategies suited to market conditions ▲ continuous growth through expansion of assets under management (AUM).

First, researcher Park said, "HB Investment discovers high-growth potential deals based on clear investment principles such as financial and technological comparative advantages. It invests in sectors such as high-tech (information technology), software (services), and bio (healthcare) at ratios of 4:3:3 respectively. This multi-sector investment has resulted in stable exit performance every year," he said.

He continued, "It has secured high profitability based on stable fund management. As of the third quarter of last year, its operating profit margin was the highest in the industry, and it was also ranked first in VC exit performance in the first half of that year." He analyzed, "Due to reinvestment by existing limited partners (LPs), securing new LPs, increased investment, and reinvestment of exit funds, continuous AUM expansion is expected. This will sustain growth."

Currently, about 240 VC companies are registered and operating domestically, and HB Investment ranked 25th in assets under management as of the first half of last year. As of the submission date of the securities registration statement on the 10th, it is managing 18 venture investment associations. Based on 2022 data, the revenue composition is 46.0% general management fees, 2.8% performance management fees, and 51.2% profits related to investments in affiliates.

Currently, the public offering price band is 2,400 to 2,800 KRW. Applying an average price-to-earnings ratio (PER) of 11.3 times from the recent four quarters’ performance of similar domestic companies (Company K, Now IB, TS Investment), the valuation was calculated with a 26.6 to 37.1% discount compared to the per-share valuation of 3,816 KRW. Researcher Park added, "After listing, the freely tradable shares account for 33.8% of the total shares (9.08 million shares, 25.4 billion KRW at the upper limit), which is somewhat burdensome."