[Click eStock] "Fasoo, Undervalued Appeal Highlighted Alongside Earnings Improvement"

[Asia Economy Reporter Hyungsoo Park] DS Investment & Securities estimated on the 12th that Pasoo will achieve its highest-ever quarterly performance in the fourth quarter of this year. No investment opinion or target price was provided.

Seunghoe Kim, a researcher at DS Investment & Securities, explained, "In the fourth quarter, we expect to achieve the highest-ever quarterly performance due to the seasonal peak and maximization of operating leverage effects," adding, "We estimate sales of 25.7 billion KRW and operating profit of 11 billion KRW in the fourth quarter."

He continued, "This represents an increase of 39.2% and 88.5% respectively compared to the same period last year," and added, "We expect an operating profit margin of 42.6%."

He emphasized, "Due to the spread of non-face-to-face culture, the introduction of DRM solutions and demand for Windows 10 replacement will result in data security sales of 18.4 billion KRW," and added, "Since the second quarter of this year, overseas exports and MyData business have become visible, and sales of personal information de-identification solutions are also increasing."

Researcher Kim analyzed, "Next year, with the addition of overseas exports and de-identification solution sales, we expect to achieve sales of 68.5 billion KRW and operating profit of 13.1 billion KRW," which is an increase of 41.2% and 72.4% respectively compared to this year."

He added, "the current stock price is only 11.0 times the price-to-earnings ratio (PER) based on this year's expected performance and 7.4 times the PER based on next year's performance," and said, "it does not reflect this year's performance improvement and growth after next year."

He judged, "Due to operating losses until the first half of this year, it did not receive an appropriate valuation," and added, "As performance improvement becomes visible from the third quarter of this year, the attractiveness of undervaluation in the stock price will be highlighted."

This content was produced with the assistance of AI translation services.