Korea Investment & Securities suggested on the 30th that SOOP’s current valuation is somewhat undervalued considering its stable performance and expansion in overseas businesses. They recommended seizing the opportunity to buy from a long-term perspective. The target stock price is set at 145,000 KRW, and the investment opinion is maintained at ‘buy.’
In the previous quarter, SOOP’s operating profit was 32.7 billion KRW (up 14.8% year-on-year), slightly exceeding market expectations of 30.3 billion KRW. The sales revenue was 107.6 billion KRW (up 14.1% year-on-year), where advertising sales (21.9 billion KRW) decreased by 21.5% compared to the previous quarter, but platform sales (84.9 billion KRW) increased by about 3%.
Researcher Jung Ho-yun from Korea Investment & Securities explained the positive performance by stating, “The impact of the fourth quarter’s peak season was removed, but promoting e-sports league production boosted brand content advertising revenue above our estimates.” He added, “The decline in advertising sales also led to a reduction in related operating expenses, and costs related to last year’s fourth-quarter awards and events decreased.”
Researcher Jung highlighted SOOP’s attractive valuation. He stated, “The market has concerns about the decline in MUV (Monthly Unique Visitors), but PU (Paying Users) and ARPU (Average Revenue Per User) remain solid, continuing the growth potential of platform sales.” He further noted, “Considering the stable performance in Korea and the emergence of new growth opportunities overseas, a PER (Price-to-Earnings Ratio) of 8 times is a somewhat undervalued valuation.”