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JONBUR Research · Initiation

Finger · 163730 · Software

Finger: Sharp Three-Month Rally Meets Thin Profits and Heavy Financing Activity

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Finger's shares closed at ₩12,020 on 2026-10-20, up 54.5% over three months but still 53.1% below the 52-week high of ₩25,650. Filed results show revenue near ₩92.2B with a trailing operating margin of 0.8%, while recent filings show convertible bond, rights offering and share acquisition activity.

Written Oct 21, 2026 · Data as of Oct 20, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a small KOSDAQ software company whose revenue has recovered but whose core profitability remains thin. Trailing revenue of ₩92.2B is roughly flat versus 2021 (₩94.8B), and the operating margin of 0.8% is well below the 7.8% of 2021. Trailing net income of ₩6.0B (net margin 6.5%) is much larger than operating income of ₩783M, so the bottom line does not appear to come from core operations; the data does not say what drove the gap.

The share price has risen 20.3% in one month and 54.5% in three months. Over the same period foreign ownership fell from 8.0% to 2.6%, and the last 20 days show foreign net selling of about ₩1.2B against retail net buying of about ₩974M. The model estimate sits well below the current price. News headlines are not available in the data.

Business overview

Finger is listed on KOSDAQ in the software sector and was listed on 2021-01-29, with 12,765,717 shares outstanding and a market capitalization of about ₩153.4B. Revenue was ₩94.8B in 2021, ₩90.1B in 2022, ₩83.1B in 2023 and ₩71.6B in 2024, then rose 27.9% to ₩91.6B in 2025. The data does not describe specific products or segments.

Financial analysis

These figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩92.2B, operating income ₩783M, net income ₩6.0B, operating margin 0.8%, net margin 6.5%, ROE 8.6%.

Annual operating income was ₩7.4B in 2021, ₩5.4B in 2022, ₩3.7B in 2023, a loss of ₩470M in 2024 and ₩1.5B in 2025. Annual net income was volatile: ₩599M, ₩1.7B, ₩4.4B, ₩803M and ₩296M over 2021-2025.

The balance sheet shows cash of ₩108.0B against borrowings of ₩62.5B, with liabilities to equity of 84.8%. Trailing free cash flow is slightly negative at about -₩392M.

Valuation

On trailing figures the stock trades at a P/E of 25.6, P/B of 1.6 and P/S of 1.7, with a dividend yield of 0.8%. Enterprise value is about ₩107.4B; EV/EBITDA is not available. Year-end P/E was 431.1 in 2025 and 36.6 in 2023, so the current multiple is lower than recent year-ends, though earnings have been very uneven. Year-end P/B ranged from 2.3 to 7.6 over 2021-2025, against 1.6 now.

Listed peers show P/E of 7.3 to 48.4 and P/B of 0.5 to 4.9, so Finger sits within the range; the peers are larger companies, mostly in games.

The valuation model (5-year discounted cash flow, 9.1% rate, based on trailing figures to H1 2026) gives a base estimate of ₩5,103 per share, with a bear case of ₩3,526 and a bull case of ₩7,712. This is a model estimate based on the assumptions shown, not a target. The share price of ₩12,020 is above even the bull case.

Catalysts

  • Filings on 2026-09-28 show a convertible bond issue decision, which could change the share count and funding structure.
  • A rights offering (paid-in capital increase) decision was filed on 2026-10-01, with a securities issuance results filing the same day.
  • Several filings between 2026-09-22 and 2026-10-21 report acquisitions of shares in other companies, including amendments, which may signal a change in business scope.
  • A decision on loan extension was filed on 2026-09-30, relevant to the ₩62.5B of borrowings.
  • An amended 5%+ holding report was filed on 2026-10-19, indicating a change in a major shareholder position.

Risks

  • Core profitability is thin, with a trailing operating margin of 0.8% and an operating loss in 2024.
  • Net income is far above operating income, so earnings quality and repeatability are unclear from the data.
  • New equity and convertible issuance may dilute existing shareholders.
  • The price of ₩12,020 is above the model's bull-case estimate of ₩7,712, and the stock is up 54.5% in three months, so it may be sensitive to a reversal.
  • Foreign ownership fell from 8.0% to 2.6% in 60 days and free cash flow is slightly negative.

Closing view

The evidence is mixed. Revenue has recovered to about 2021 levels and the balance sheet holds more cash than borrowings, but operating profit is small, free cash flow is slightly negative and recent filings point to sizeable financing and acquisition activity whose effects are not yet visible in the numbers. The share price is well above the model estimate range, which implies the market is assuming better results than the trailing data show. This report offers no recommendation; the filings on financing and acquisitions are the most important items to follow.

Model estimate of fair value

Bear
₩3,526
-71%
Base
₩5,103
-57%
Bull
₩7,712
-36%

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 9.1%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026InitiationStart of coverage (reader request)Finger: Sharp Three-Month Rally Meets Thin Profits and Heavy Financing Activity

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information