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The Pinkfong · 403850 · Entertainment

The Pinkfong Company: Low Multiples, Large Cash Balance and a Share Cancellation, After a Steep Fall From Its Highs

Why this report

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The Pinkfong Company trades at ₩11,920 per share and a market cap of ₩171.1B, far below its 52-week high of ₩61,500. Filings show a net cash balance sheet and low multiples, but TTM net income is boosted well above operating income and revenue has been flat to slightly lower.

Written Oct 26, 2026 · Data as of Oct 23, 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 profitable, debt-light company priced at low multiples. P/E is 4.1, P/B is 0.8 and EV/EBITDA is 1.7, against peers with P/B of 1.1 to 2.2 and P/E of 12.1 to 22.5 where available. Cash of ₩139.5B against borrowings of ₩500M explains why enterprise value is only ₩32.1B.

The data does not fully support reading this as a clean earnings story. TTM net income of ₩42.0B is far above operating income of ₩16.0B, which suggests non-operating gains, but the data does not say what they are. Revenue fell 3.6% in 2025. The stock was listed on 2025-11-18, so there is no one-year return, and the price has dropped sharply from its 52-week high of ₩61,500. The company announced the cancellation of treasury shares in October 2026, and foreign ownership rose from 2.8% to 5.2% over 60 days.

Business overview

The Pinkfong Company is listed on KOSDAQ in the entertainment sector. It was founded on 2010-05-26 and listed on 2025-11-18, with 14,351,010 listed shares. The CEO is listed as 김민석. Annual revenue was ₩94.6B in 2023, ₩97.4B in 2024 (+2.9%) and ₩93.9B in 2025 (-3.6%). The data shows no product or segment breakdown. News in the data notes a Baby Shark Christmas Special film due to open in CGV theaters on December 5.

Financial analysis

These figures come from filed financial statements. TTM revenue to H1 2026 is ₩91.0B, with operating income of ₩16.0B (17.6% margin) and net income of ₩42.0B (46.1% margin). ROE is 27.3%.

Operating income swung from a ₩3.2B loss in 2023 to ₩18.8B in 2024 and ₩19.4B in 2025 (20.6% margin). Net income went from a ₩16.3B loss in 2023 to ₩7.9B in 2024 and ₩18.2B in 2025. ROE moved from -19.0% to 8.8% to 13.1%.

The balance sheet is conservative: liabilities to equity is 10.5%, cash is ₩139.5B and borrowings are ₩500M. TTM free cash flow is ₩20.4B. The TTM operating margin of 17.6% is below the 2025 level of 20.6%.

Valuation

At ₩11,920 the stock trades at a P/E of 4.1, P/B of 0.8, P/S of 1.9 and EV/EBITDA of 1.7, with no dividend yield. The year-end 2025 P/E was 19.8 and P/B was 2.0, so current multiples are much lower than at that point. The low P/E partly reflects the TTM net income being well above operating income.

Among peers, SM Entertainment has a P/E of 14.4 and P/B of 1.8, JYP Entertainment 12.1 and 2.0, YG Entertainment 22.5 and 1.5, HYBE a P/B of 2.2, and CJ CGV a P/B of 1.1. P/E is not available for HYBE and CJ CGV.

The valuation model (5-year discounted cash flow, 7.4% rate, based on TTM to H1 2026) gives a model estimate based on the assumptions shown of ₩21,578 per share in the base case, ₩17,621 in the bear case and ₩28,172 in the bull case. All three are above the current price of ₩11,920. This is an output of assumptions, not a target or a reason to buy or sell.

Catalysts

  • The cancellation of treasury shares, decided on 2026-10-13, was followed by a gain of about 6% to 7% in early trading on 2026-10-14, according to Chosun Biz and Etoday.
  • The own-share trust agreement was terminated on 2026-10-13, after a buyback trust contract was signed on 2026-07-23.
  • Several 5%+ holding reports were filed, most recently on 2026-10-23, and foreign ownership rose to 5.2% from 2.8% sixty days earlier.
  • Foreign investors (₩1.9B) and institutions (₩0.9B) were net buyers over the last 20 days, while retail investors were net sellers (₩2.7B).
  • The Baby Shark Christmas Special film is scheduled to open in CGV theaters on December 5, per Business Korea.

Risks

  • Revenue declined 3.6% in 2025 and TTM revenue of ₩91.0B is below the 2024 level of ₩97.4B.
  • TTM net income of ₩42.0B is much larger than operating income of ₩16.0B, so headline earnings and the low P/E may not reflect repeatable operating profit.
  • The share price is far below its 52-week high of ₩61,500, which shows high volatility since listing, and there is limited trading history.
  • The TTM operating margin of 17.6% is lower than the 20.6% reported for 2025.
  • The model estimate depends on its assumptions, including a 7.4% discount rate, and the data shows a wide bear-to-bull range of ₩17,621 to ₩28,172.

Closing view

The filings show a profitable company with little debt, a large cash balance, low multiples against peers and a recent share cancellation. Against that, revenue is not growing, a large part of recent net income appears to come from outside operations, and the shares have fallen sharply since listing. The model estimates sit above the current price, but they rest on assumptions. The evidence points to a company whose reported earnings quality and revenue trend matter most, and the data does not settle either question.

Model estimate of fair value

Bear
₩17,621
+50%
Base
₩21,578
+84%
Bull
₩28,172
+140%

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

Report history

  1. Oct 26, 2026InitiationStart of coverage (reader request)The Pinkfong Company: Low Multiples, Large Cash Balance and a Share Cancellation, After a Steep Fall From Its Highs

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