1. What Happened? HB Investment’s Earnings Surge

HB Investment reported revenue of KRW 6.5 billion, operating profit of KRW 3.9 billion, and net profit of KRW 3.2 billion in H1 2025, demonstrating remarkable growth compared to the same period last year. Notably, the operating profit margin of 59.9% and net profit margin of 49.2% are industry-leading.

2. Why These Results? Successful Exits and Stable Financials

The primary driver of this improved performance is successful investment exits. Venture capital performance is inherently volatile, depending on the timing of exits. HB Investment likely realized substantial gains from IPOs or M&A of portfolio companies in the first half. Additionally, the low debt-to-equity ratio (10.46%) and high current ratio (935.75%) demonstrate a stable financial structure, contributing to future investment capacity.

3. What’s Next? Sustainability and Potential Risks

Positive aspects include HB Investment’s robust financial position and the potential of its 19 active venture capital funds with a total commitment of approximately KRW 691.8 billion. However, potential risks exist, including the inherent volatility of the venture capital industry, investment risks associated with affiliated companies, and uncertainty regarding accounts receivable collection. Macroeconomic uncertainty can also hinder sustained growth.

4. What Should Investors Do? Careful Monitoring and Information Gathering

While HB Investment’s turnaround is a positive sign, investors should carefully evaluate the sustainability of future earnings, portfolio performance, and the status of investments in affiliated companies before making investment decisions. Continuous monitoring of quarterly earnings announcements and progress on key investment deals is crucial.