HB Technology Q1 Net Income Surges but Operating Profit Remains Slim; Maintains 20 Won DPS

Q1 2026 consolidated net profit of 18.15 billion KRW (vs. -0.57 billion KRW in Q1 2025), a sharp turnaround, but driven by gains from financial assets (29.33 billion KRW). Operating profit only 0.53 billion KRW (revenue 36.33 billion KRW, operating margin 1.5%)
Shareholder return: Final cash dividend of 20 KRW per share (payout ratio 6.3%, total 1.78 billion KRW) approved; no interim dividend
Financial soundness: Net debt-to-equity ratio 10.6% vs. 23.2% at end of 2025; cash and equivalents increased to 62.55 billion KRW (from 29.07 billion)
Convertible bond maturity: 8th CB of 12 billion KRW (conversion price 2,040 KRW, 5.88 million shares) maturing August 2026; put option exists
Credit rating: NICE D&B BBB+ (regular), Icredebl BBB (regular)
Order backlog: Equipment division 39.88 billion KRW (display 35.97, secondary battery 3.91)
Revenue: 36.33 billion KRW (up 21% YoY), equipment 59.4%, component materials 40.6%
High dependency on Samsung affiliates: equipment 94.3%, components 60.2%
Contingent liabilities: Guarantees for CEO of 1.17 billion KRW + USD 25.8 million