Ask Warren

JONBUR Research · Initiation

PearlAbyss · 263750 · Software

PearlAbyss: Trailing profit jumps on H1 2026 results while shares trade below the model's fair value range's opposite end

Why this report

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

PearlAbyss closed at ₩32,150 on 2026-10-12, down 9.2% over one year, with a market cap of about ₩2.1T. Trailing twelve-month results to H1 2026 show revenue of ₩723.4B and operating income of ₩281.9B, a sharp change from the losses of 2022-2025 annual operating results, while our simple model gives a fair value range 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.

XfWATGr/in@

Thesis

The data supports a sharp improvement in earnings: trailing operating margin is 39.0% against an operating loss of 4.1% margin in 2025. The shares are at a P/E of 7.6, in line with NC and Netmarble at 7.3 and below Krafton at 10.9. Against that, the trailing figures are far above any annual figure in the last five years, and the data does not explain the jump, so it is unclear how repeatable it is. Our model uses a much lower free cash flow (₩91.5B) and a -1.8% growth assumption, and returns values below the market price. The gap between the trailing numbers and the model inputs is the central uncertainty. Investor flow, foreign ownership and short balance data are not available.

Business overview

PearlAbyss is a KOSDAQ-listed software company, founded 2010-09-10 and listed 2017-09-14, with 64,247,855 listed shares and CEO 허진영. Annual revenue was ₩403.8B in 2021, ₩385.7B in 2022, ₩333.5B in 2023, ₩342.4B in 2024 and ₩365.6B in 2025. The data does not describe products or segments. The 52-week range is ₩29,450 to ₩77,400, so the price sits about 58% below the high and about 9% above the low.

Financial analysis

Figures come from filed financial statements (DART). Trailing revenue to H1 2026 is ₩723.4B, operating income ₩281.9B and net income ₩271.3B, for margins of 39.0% operating and 37.5% net, and ROE of 29.3%. Annual operating income was ₩43.0B in 2021, ₩16.4B in 2022, then losses of ₩16.4B in 2023, ₩12.3B in 2024 and ₩14.8B in 2025. Net income was positive in 2023 (₩15.2B) and 2024 (₩60.3B) despite operating losses, and was -₩8.4B in 2025. The balance sheet looks conservative: cash ₩314.6B, borrowings ₩71.2B, liabilities to equity 22.4%. Trailing free cash flow is ₩261.6B.

Valuation

Current multiples are P/E 7.6, P/B 2.0, P/S 2.9 and EV/EBITDA 6.2, with enterprise value of ₩1.82T. Year-end 2025 P/B was 3.0, so P/B is lower now. Annual P/E histories are not available. Peers: Hyundai Autoever P/E 50.5 and P/B 5.1, Krafton 10.9 and 1.3, NC 7.3 and 1.3, Netmarble 7.3 and 0.5; NHN has no multiples. Dividend yield is not available. Our simple 5-year DCF model (9.0% discount rate, -1.8% growth, FCF ₩91.5B, net cash ₩243.4B as of H1 2026) gives ₩18,928 bear, ₩22,799 base and ₩28,133 bull per share. All three are below the ₩32,150 price, meaning the market is pricing in more than the model assumes, such as continued high trailing cash flow.

Catalysts

  • The half-year report filed on 2026-08-14 and preliminary earnings on 2026-08-11 set out the trailing results that now drive the multiples.
  • A share cancellation decision and a corporate value-up plan were filed on 2026-06-09, which relate to shareholder returns.
  • A trust-contract acquisition status report on 2026-09-09 points to share purchases through a trust, though details are not in the data.
  • An IR event was held on 2026-10-02, and another on 2026-06-25.
  • A 5%+ holding report on 2026-06-30 shows a change in a major holder's stake, with no details available.

Risks

  • Trailing profit is far above all annual results since 2021, so it may not be sustainable and the data does not explain its source.
  • Our model fair value range of ₩18,928 to ₩28,133 sits below the current price.
  • Shares fell 8.9% in one month, 8.4% in three months and 9.2% in one year, showing weak momentum.
  • Operating losses in 2023 to 2025 show earnings have been volatile and highly uneven.
  • A dissolution event at a subsidiary was filed on 2026-06-25, and the data gives no detail on its impact; flow, short and news data are also unavailable.

Closing view

The data shows a company whose trailing profitability and cash generation have changed sharply, with a strong balance sheet and a P/E of 7.6 in line with some peers. Yet the five-year record is mostly weak, and our conservative model values the shares below the market price. The evidence is mixed, and the key question is whether trailing results persist, which the available data cannot answer.

Model estimate of fair value

Bear
₩18,928
-45%
Base
₩22,799
-34%
Bull
₩28,133
-18%

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

A simple 5-year discounted cash flow from filed statements (H1 2026): revenue growth -1.8% fading to 2%, discount rate 9%. Per share, not a price target. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)PearlAbyss: Trailing profit jumps on H1 2026 results while shares trade below the model's fair value range's opposite end

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