YG Plus: Profitable TTM Results Alongside a 53.8% One-Year Share Price Decline

Thesis

The data supports a picture of a company that has recovered to solid profitability after a loss-making operating year in 2024, while the share price has moved the other way. Price-to-earnings is 9.6 and price-to-book is 1.0, lower than the year-end levels of 20.7 and 2.5 in 2025. Free cash flow of ₩28.5B is positive, and liabilities are 48.9% of equity.

What the data does not explain is the reason for the 53.8% one-year fall. No news headlines are available, so no cause can be identified. Earnings have also been volatile: revenue fell 17.3% in 2024 and rose 27.7% in 2025, and the operating result swung from a loss to a profit. The dividend yield is 0.0%. Foreign ownership is 5.2%, unchanged over 60 days, and the short balance is 0.1%.

Business overview

YG Plus is listed on KOSPI in the Internet sector. It was founded on 1996-11-15 and listed on 2003-08-01, with 63,663,110 listed shares and a market capitalization of about ₩194.5B. The CEO is listed as 최성준. The data does not describe the company's products or segments, so the business is only visible through its numbers. Annual revenue ranged from ₩140.2B in 2022 to ₩236.0B in 2025. Recent filings include three decisions to acquire equity-linked bonds (April to May 2026), a major management matter report on 2026-05-19 and a change of independent directors on 2026-06-22. The details of these filings are not in the data.

Financial analysis

These figures come from filed financial statements. For the trailing period to H1 2026, revenue was ₩244.3B, operating income ₩29.5B (12.1% margin) and net income ₩20.2B (8.3% margin). Return on equity was 11.2%.

For 2025, revenue was ₩236.0B (up 27.7%), operating income ₩32.3B (13.7% margin), net income ₩22.4B and ROE 12.7%. In 2024, revenue was ₩184.9B, with an operating loss of ₩0.7B and net income of ₩1.2B. 2023 revenue was ₩223.6B with operating income of ₩21.2B. 2021 had the highest margin in the series at 16.6%.

On the balance sheet, cash is ₩25.1B against borrowings of ₩10.4B. Liabilities are 48.9% of equity. Free cash flow is ₩28.5B. Enterprise value is about ₩112.5B.

Valuation

At the current price the P/E is 9.6, P/B 1.0 and P/S 0.8. EV/EBITDA is not available. These compare with 2025 year-end readings of 20.7 for P/E and 2.5 for P/B, and with a 2021 year-end P/E of 23.2 and P/B of 3.8.

Among listed peers in the data, P/E is 13.3 for NAVER, 38.8 for Kakao, 1.9 for Daou Technology, 11.5 for NICE Information Service and 27.7 for Kinx. P/B ranges from 0.4 to 3.1. YG Plus sits in the lower half on P/E and in the middle on P/B.

The valuation model uses a 5-year discounted cash flow at a 7.4% discount rate, based on trailing figures to H1 2026. It gives a base estimate of ₩9,458 per share, with a bear case of ₩6,168 and a bull case of ₩14,912. All are above the ₩3,055 close. This is a model estimate based on the assumptions shown, not a target, and the gap may reflect the market doubting the durability of recent earnings.

Catalysts

• The half-year report filed on 2026-08-14 is the latest full set of results, and the next quarterly filing will show whether the 12.1% operating margin holds.
• The three decisions to acquire equity-linked bonds filed between April and May 2026 may become relevant as further details or amendments appear.
• The major management matter filed on 2026-05-19 and the independent director changes filed on 2026-06-22 point to governance developments worth following.
• Foreign investors were net buyers of about ₩475M over the last 20 days while retail investors were net sellers of about ₩472M, a small shift in flows.

Risks

• Earnings have been volatile, including an operating loss in 2024, so the recent recovery may not persist.
• The share price is down 53.8% over one year and the data gives no explanation, leaving the cause of the weakness unclear.
• Revenue has swung widely, from -17.3% in 2024 to +27.7% in 2025, which makes forecasting difficult and model estimates sensitive to assumptions.
• The company pays no dividend, with a yield of 0.0%, so shareholder returns depend entirely on the share price.
• The model range (₩6,168 to ₩14,912) is wide and depends on projected cash flows that may not materialize.

Closing view

The data shows a company with recovered profitability, positive free cash flow, moderate leverage and a low P/E of 9.6 and P/B of 1.0 after a steep share price decline. The model's base estimate of ₩9,458 is well above the ₩3,055 close, but it rests on trailing figures from a business whose results have swung sharply from year to year. With no news headlines and limited detail on recent filings, the reason for the market's caution cannot be determined from this data. The evidence is mixed and does not on its own point to a conclusion.

Model estimate of fair value

Bear

₩6,168

+112%

Base

₩9,458

+224%

Bull

₩14,912

+412%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Half-year report (Jun 2026)Aug 14, 2026
• Report on Appointment, Dismissal, or Mid-Term Resignation of Independent DirectorsJun 22, 2026
• Disclosure of Corporate Governance ReportMay 29, 2026
• Major management matter relevant to investorsMay 19, 2026
• Quarterly report (Mar 2026)May 15, 2026
• [Amended Filing] Decision to Acquire Equity-Linked BondsMay 11, 2026
• [Amended Filing] Decision to Acquire Equity-Linked BondsApr 30, 2026
• Decision to Acquire Equity-Linked BondsApr 20, 2026
• Annual general meeting resultsMar 27, 2026
• Amended attachment: Annual report (Dec 2025)Mar 20, 2026
• Audit report submittedMar 19, 2026
• Annual report (Dec 2025)Mar 19, 2026
• Daily prices up to 2026-10-22
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 23, 2026InitiationStart of coverage (reader request)YG Plus: Profitable TTM Results Alongside a 53.8% One-Year Share Price Decline