Buy Or Sell Opportunity • Jun 23
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 41% to ₩2,450. The fair value is estimated to be ₩3,161, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 29%. New Risk • May 18
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩146.0b (US$97.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 25% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩146.0b market cap, or US$97.2m). Board Change • Apr 10
Less than half of directors are independent There are 3 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 new directors. No experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). CEO & Chairman Yul-bin Kang is the most experienced director on the board, commencing their role in 2025. Independent Outside Director Jeong-hoon Lee was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Mar 14
Full year 2025 earnings released: ₩895 loss per share (vs ₩43.00 profit in FY 2024) Full year 2025 results: ₩895 loss per share (down from ₩43.00 profit in FY 2024). Revenue: ₩122.5b (flat on FY 2024). Net loss: ₩40.2b (down ₩42.1b from profit in FY 2024). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Announcement • Mar 12
Neptune Company, Annual General Meeting, Mar 26, 2026 Neptune Company, Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 138, teheran-ro, gangnam-gu, seoul South Korea Announcement • Jul 10
KRAFTON, Inc. (KOSE:A259960) completed the acquisition of an additional 39.37% stake in Neptune Company (KOSDAQ:A217270) from Kakao Games Corp. (KOSDAQ:A293490). KRAFTON, Inc. (KOSE:A259960) agreed to acquire an additional 39.37% stake in Neptune Company (KOSDAQ:A217270) from Kakao Games Corp. (KOSDAQ:A293490) for approximately KRW 170 billion on April 29, 2025. A cash consideration of KRW 164.97 billion valued at KRW 8972 per share will be paid by KRAFTON, Inc. As part of consideration, KRW 164.97 billion is paid towards common equity of Neptune Company. Upon completion, KRAFTON, Inc. will own 42.53% stake in Neptune Company. The transaction is subject to approval by the Fair-Trade Commission. The expected completion of the transaction is June 30, 2025. As of June 30, 2025, the transaction is expected to complete on July 31, 2025.
KRAFTON, Inc. (KOSE:A259960) completed the acquisition of an additional 39.37% stake in Neptune Company (KOSDAQ:A217270) from Kakao Games Corp. (KOSDAQ:A293490) on July 9, 2025. New Risk • May 21
New major risk - Revenue and earnings growth Earnings have declined by 22% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 22% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). New Risk • May 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Mar 11
Neptune Company, Annual General Meeting, Mar 26, 2025 Neptune Company, Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 501, bundangsuseo-ro, bundang-gu, gyeonggi-do, seongnam South Korea Announcement • Jan 22
Neptune Company (KOSDAQ:A217270) acquired 51.37% stake in Fantome Inc. Neptune Company (KOSDAQ:A217270) acquired 51.37% stake in Fantome Inc. on January 20, 2025.
Neptune Company (KOSDAQ:A217270) completed the acquisition of 51.37% stake in Fantome Inc. on January 20, 2025. Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: ₩539 (vs ₩354 loss in 3Q 2023) Third quarter 2024 results: EPS: ₩539 (up from ₩354 loss in 3Q 2023). Revenue: ₩38.3b (up 77% from 3Q 2023). Net income: ₩24.2b (up ₩40.0b from 3Q 2023). Profit margin: 63% (up from net loss in 3Q 2023). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 44% per year, which means it is performing significantly worse than earnings. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩4,855, the stock trades at a trailing P/E ratio of 68.8x. Average trailing P/E is 20x in the Entertainment industry in South Korea. Total loss to shareholders of 80% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩480 (vs ₩59.00 in 1Q 2023) First quarter 2024 results: EPS: ₩480 (up from ₩59.00 in 1Q 2023). Revenue: ₩24.6b (up 29% from 1Q 2023). Net income: ₩21.5b (up ₩18.9b from 1Q 2023). Profit margin: 88% (up from 14% in 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 32 percentage points per year, which is a significant difference in performance. Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ₩59.00 (vs ₩2,203 loss in 1Q 2022) First quarter 2023 results: EPS: ₩59.00 (up from ₩2,203 loss in 1Q 2022). Revenue: ₩19.0b (up 306% from 1Q 2022). Net income: ₩2.64b (up ₩72.5b from 1Q 2022). Profit margin: 14% (up from net loss in 1Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). CFO & Inside Director Oksun Lee was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 28% share price gain to ₩14,600, the stock trades at a trailing P/E ratio of 49.8x. Average trailing P/E is 17x in the Entertainment industry in South Korea. Total returns to shareholders of 66% over the past three years. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩12,850, the stock trades at a trailing P/E ratio of 43.8x. Average trailing P/E is 18x in the Entertainment industry in South Korea. Total returns to shareholders of 24% over the past three years. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩20,500, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 31x in the Entertainment industry in South Korea. Total returns to shareholders of 74% over the past three years. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 24% share price gain to ₩27,700, the stock trades at a trailing P/E ratio of 6.5x. Average trailing P/E is 39x in the Entertainment industry in South Korea. Total returns to shareholders of 172% over the past three years. Valuation Update With 7 Day Price Move • Nov 18
Investor sentiment improved over the past week After last week's 22% share price gain to ₩34,900, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 52x in the Entertainment industry in South Korea. Total returns to shareholders of 229% over the past three years. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improved over the past week After last week's 15% share price gain to ₩24,500, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 42x in the Entertainment industry in South Korea. Total returns to shareholders of 153% over the past three years. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment improved over the past week After last week's 16% share price gain to ₩19,400, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 43x in the Entertainment industry in South Korea. Total returns to shareholders of 101% over the past three years. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩18,400, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 31x in the Entertainment industry in South Korea. Total returns to shareholders of 58% over the past three years. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩24,150, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 40x in the Entertainment industry in South Korea. Total returns to shareholders of 108% over the past three years. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improved over the past week After last week's 15% share price gain to ₩28,150, the stock trades at a trailing P/E ratio of 16.4x. Average trailing P/E is 41x in the Entertainment industry in South Korea. Total returns to shareholders of 159% over the past three years. Is New 90 Day High Low • Mar 10
New 90-day low: ₩22,750 The company is down 22% from its price of ₩29,000 on 10 December 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 6.0% over the same period. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩22,750, the stock is trading at a trailing P/E ratio of 31.1x, down from the previous P/E ratio of 37.1x. This compares to an average P/E of 24x in the Entertainment industry in South Korea. Total returns to shareholders over the past three years are 57%. Announcement • Feb 06
Neptune Company announced that it has received KRW 193.519902 billion in funding from Kakao Games Corp. On February 5, 2021, Neptune Company (KOSDAQ:A217270) closed the transaction. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 16% share price gain to ₩29,650, the stock is trading at a trailing P/E ratio of 40.5x, up from the previous P/E ratio of 34.8x. This compares to an average P/E of 20x in the Entertainment industry in South Korea. Total returns to shareholders over the past three years are 101%. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment improved over the past week After last week's 28% share price gain to ₩29,900, the stock is trading at a trailing P/E ratio of 40.9x, up from the previous P/E ratio of 32x. This compares to an average P/E of 21x in the Entertainment industry in South Korea. Total returns to shareholders over the past three years are 92%. Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment deteriorated over the past week After last week's 27% share price decline to ₩23,400, the stock is trading at a trailing P/E ratio of 32x, down from the previous P/E ratio of 43.7x. This compares to an average P/E of 20x in the Entertainment industry in South Korea. Total returns to shareholders over the past three years are 44%. Valuation Update With 7 Day Price Move • Nov 26
Market bids up stock over the past week After last week's 24% share price gain to ₩14,900, the stock is trading at a trailing P/E ratio of 23x, up from the previous P/E ratio of 18.5x. This compares to an average P/E of 20x in the Entertainment industry in South Korea. Total return to shareholders over the past three years is a loss of 4.8%. Is New 90 Day High Low • Nov 26
New 90-day high: ₩14,900 The company is up 27% from its price of ₩11,700 on 28 August 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is down 5.0% over the same period. Is New 90 Day High Low • Sep 25
New 90-day high: ₩13,800 The company is up 124% from its price of ₩6,160 on 26 June 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 10.0% over the same period.