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JONBUR Research · Initiation

NHN · 181710 · Software

NHN: Sharp 12-Month Share Price Rally Alongside a Recovery to Modest Profit

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

NHN's shares closed at ₩53,600 on 2026-10-12, up 92.5% over one year but 5.0% lower over one month. Filed statements show a return to profit, while the model estimate based on the assumptions shown sits below the current price.

Written Oct 13, 2026 · Data as of Oct 12, 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 turnaround story in the numbers: operating income moved from a ₩32.6B loss in 2024 to ₩132.4B in 2025 and ₩167.0B on a trailing basis to H1 2026. Free cash flow of ₩226.6B and cash of ₩822.3B against borrowings of ₩124.4B point to a comfortable liquidity position.

What the data does not fully support is a high-quality earnings base. Margins are thin (operating 6.1%, net 2.6%), ROE is 4.8%, and revenue growth slowed to 2.4% in 2025. The share price has risen 40.1% in three months, which is well ahead of the improvement in reported profit. Investor flow, foreign ownership and short balance data are not available, and no news headlines were provided, so we cannot say who has driven the move.

Business overview

NHN is a KOSPI-listed software company, founded 2013-08-01 and listed 2013-08-29, with 33,766,123 listed shares and a market capitalisation of about ₩1.81T. The CEO is listed as 정우진. Revenue grew from ₩1.92T in 2021 to ₩2.52T in 2025, and trailing revenue to H1 2026 is ₩2.74T. The data does not break down revenue by segment, so what drives the figures is not available here.

Financial analysis

All figures come from filed financial statements (DART). Revenue rose every year shown: 2022 +9.9%, 2023 +7.3%, 2024 +8.2%, 2025 +2.4%. Operating margin was 5.1% in 2021, fell to 1.8% in 2022, 2.4% in 2023 and -1.3% in 2024, then recovered to 5.3% in 2025 and 6.1% on a trailing basis.

Net income was ₩116.9B in 2021, negative from 2022 to 2024 (including a ₩132.5B loss in 2024), then ₩32.1B in 2025 and ₩70.4B trailing. ROE moved from -8.6% in 2024 to 2.2% in 2025 and 4.8% trailing. Liabilities to equity are 94.4%. Trailing free cash flow of ₩226.6B is larger than net income of ₩70.4B, though the data does not explain the gap.

Valuation

Current multiples are P/E 25.7, P/B 1.2, P/S 0.7 and EV/EBITDA 4.7, with a dividend yield of 0.3%. At the end of 2025 the P/E was 30.6 and the P/B 0.7, so the price-to-book has risen while earnings multiples have eased as profit grew. Earlier year-end multiples are not available.

Among the peers provided, P/E ranges from 7.3 (Netmarble) to 50.5 (Hyundai Autoever) and P/B from 0.5 to 5.1. NHN's P/E is above Krafton (10.9), NC (7.4), Netmarble (7.3) and PearlAbyss (7.6), and its P/B of 1.2 is close to Krafton and NC at 1.3.

The valuation model (5-year discounted cash flow at an 8.2% rate, based on trailing data to H1 2026) gives a base estimate of ₩34,374 per share, with a bear case of ₩14,732 and a bull case of ₩68,529. This is a model estimate based on the assumptions shown, not a target. The current price of ₩53,600 is above the base case and within the bear-to-bull range.

Catalysts

  • The Merger Completion Report filed 2026-10-01 shows a merger has been completed, though the data gives no detail on its effect on results.
  • Filings dated 2026-10-13 cover a decision on guarantee of debt for another party and an amendment to a loan provision decision, which may affect the balance sheet.
  • A change in the largest shareholder's holdings and a 5%+ holding report on 2026-09-22 may indicate shifts in ownership.
  • An investor relations event on 2026-09-08 and a response to a rumour or news report on 2026-08-20 show recent communication with the market.
  • The next reported results will show whether the improvement seen in the H1 2026 half-year report continues.

Risks

  • Margins are thin, with a 2.6% net margin and a 4.8% ROE, leaving little room for earnings setbacks.
  • The share price is above the model's base estimate of ₩34,374, so the market is pricing in more than that case assumes.
  • The stock is up 92.5% over a year against a 52-week range of ₩25,600 to ₩78,200, so large moves in either direction have occurred.
  • Repeated guarantees of debt for other parties and loan provisions could add financial exposure, with amounts not given in the data.
  • Investor flow, foreign ownership and short interest data are unavailable, so trading-driven risks cannot be assessed.

Closing view

The data shows a company that has moved from losses to modest, improving profit with solid cash generation and a manageable debt load. The share price has run well ahead of that improvement and sits above the model's base-case estimate, though inside its bear-to-bull range. Missing flow data, segment detail and news limit the picture, so the evidence is mixed rather than conclusive.

Model estimate of fair value

Bear
₩14,732
-70%
Base
₩34,374
-31%
Bull
₩68,529
+37%

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 8.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)NHN: Sharp 12-Month Share Price Rally Alongside a Recovery to Modest Profit

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