HDC LABS Co., Ltd. (039570) AI Stock Analysis

HDC LABS Co., Ltd.

(Korea Exchange:039570)

Select Model

Rating:61Neutral

Price Target:KRW 7,533.00▲(5.50% Upside)

Action:initiatedcoverage

Date:11/02/26

The score is supported primarily by a strong, low-leverage balance sheet and attractive valuation. These positives are offset by weak revenue growth, modest profitability, declining free cash flow, and bearish technical momentum. Earnings-call and corporate-event factors were excluded because no usable data was provided.

Positive Factors

Improved ProfitabilityHigher gross, operating, and net margins indicate improved earnings quality and better conversion of revenue into profit. If sustained, this margin progress can strengthen internal funding capacity, support resilience, and provide a firmer base for earnings over the next several quarters.

Negative Factors

Revenue ContractionRevenue contraction indicates that recent profitability gains are not yet being supported by top-line expansion. Continued weakness in sales could limit operating leverage, reduce the scope for further earnings growth, and make improved margins harder to sustain across the next few reporting periods.

HDC LABS Co., Ltd. (039570) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 164.04B
Dividend Yield: 6.30%
Average Volume (3M): 7,450
Price to Earnings (P/E): 8.7
Beta (1Y): 0.05
Revenue Growth: -10.14%
EPS Growth: -11.51%
Country: KR
Employees: 5,704
Sector: General
Sector Strength: 55
Industry: Information Technology Services

HDC LABS Co., Ltd. Business Overview & Revenue Model

Company Description

HDC LABS Co., Ltd. is dedicated to providing information technology (IT) services, specifically focusing on advanced IT solutions and products designed for building environments. The company operates through three main business divisions: Life Soluti...

HDC LABS Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with low leverage and positive cash flow supports financial stability, but declining revenue, modest margins, and lower free cash flow limit the score.

Income Statement

52Neutral

Balance Sheet

82Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	615.63B	645.73B	628.81B	606.28B	610.73B	274.58B
Gross Profit	61.57B	53.10B	55.40B	53.61B	53.86B	26.55B
EBITDA	23.50B	16.92B	33.28B	25.28B	24.12B	13.06B
Net Income	19.12B	12.26B	18.98B	13.16B	12.43B	9.09B
Balance Sheet
Total Assets	419.69B	459.23B	438.16B	383.33B	382.58B	411.39B
Cash, Cash Equivalents and Short-Term Investments	125.39B	145.78B	115.17B	138.44B	112.76B	192.10B
Total Debt	51.97B	51.76B	51.43B	9.25B	12.19B	15.32B
Total Liabilities	149.95B	192.36B	170.66B	124.81B	122.06B	145.58B
Stockholders Equity	269.74B	266.87B	266.18B	258.52B	260.52B	265.81B
Cash Flow
Free Cash Flow	50.02B	55.10B	4.50B	19.25B	-34.43B	22.25B
Operating Cash Flow	51.69B	56.55B	6.60B	23.30B	-28.16B	22.65B
Investing Cash Flow	-40.65B	-42.31B	22.86B	-26.39B	-9.24B	83.64B
Financing Cash Flow	-11.24B	-11.15B	-13.88B	-13.84B	-22.75B	-14.59B

HDC LABS Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price7140.00

Price Trends

50DMA7462.60Negative

100DMA7535.60Negative

200DMA7744.82Negative

Market Momentum

MACD-85.50Positive

RSI36.66Neutral

STOCH26.04Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:039570, the sentiment is Negative. The current price of 7140.00 is below the 20-day moving average (MA) of 7298.00, below the 50-day MA of 7462.60, and below the 200-day MA of 7744.82, indicating a bearish trend. The MACD of -85.50 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:039570.

HDC LABS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:039570 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:018260	67Neutral	KRW 15.70T	24.92	―	1.57%	2.46%	-17.84%
KR:039570	61Neutral	KRW 175.52B	8.73	―	6.30%	-10.14%	-11.51%
KR:307950	60Neutral	KRW 7.93T	41.54	―	0.66%	15.77%	1.94%
KR:022100	59Neutral	KRW 2.84T	88.62	―	0.99%	-21.62%	-58.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:023590	55Neutral	KRW 1.34T	1.86	―	5.58%	134.02%	87.85%

* General Sector Average

Performance Comparison

KR:039570 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:039570	HDC LABS Co., Ltd.	7140.00	-537.15	-7.00%
KR:018260	SAMSUNG SDS CO., LTD.	203000.00	24795.69	13.91%
KR:022100	POSCO DX COMPANY LTD.	18680.00	-10845.99	-36.73%
KR:023590	DAOU TECHNOLOGY Inc.	32250.00	-6548.14	-16.88%
KR:064400	LG CNS Co., Ltd.	72200.00	4157.85	6.11%
KR:307950	Hyundai Autoever Corp.	289000.00	65085.02	29.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

HDC LABS Co., Ltd. AI Stock Analysis