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JONBUR Research · Initiation

Shift UP · 462870 · Software

Shift UP: High Margins and Single-Digit P/E After a 24.9% One-Year Share Price Decline

Why this report

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

Shift UP (KOSPI: 462870) closed at ₩30,050 on 2026-10-12, down 24.9% over one year, with a market cap of about ₩1.8T. Filed statements show trailing operating margin of 56.2% and ROE of 22.1%, while the P/E is 9.1 and a model estimate sits well above the share 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 picture of a very profitable, low-debt software company whose shares have weakened: returns were -4.3% over 1 month, -12.0% over 3 months and -24.9% over 1 year, and the price is near the lower part of its 52-week range (₩27,500 to ₩40,750). Trailing net income of ₩192.8B exceeds operating income of ₩136.6B, so net margin of 79.4% is not driven by operations alone; the data does not break down the gap. Revenue fell from the 2025 level on a trailing basis (₩243.0B versus ₩294.5B), so growth is not confirmed by the latest figures. Investor flows, foreign ownership, short balance, dividend yield and news headlines are not available in the data, so sentiment cannot be assessed from them.

Business overview

Shift UP is a KOSPI-listed company in the Software sector, founded on 2013-12-02 and listed on 2024-07-11, with 58,484,720 listed shares and CEO 김형태 per the data. Market cap is ₩1.76T and enterprise value is ₩1.53T. Annual revenue was ₩224.1B in 2024 and ₩294.5B in 2025, which is growth of 31.4%. No further description of products or business lines is available in the data.

Financial analysis

All figures come from filed financial statements (DART). In 2025, revenue was ₩294.5B, operating income ₩181.4B (61.6% margin) and net income ₩191.4B, with ROE of 22.7%. In 2024, revenue was ₩224.1B, operating income ₩152.7B (68.1% margin), net income ₩148.0B and ROE 19.4%. For the trailing twelve months to H1 2026, revenue was ₩243.0B, operating income ₩136.6B (56.2% margin), net income ₩192.8B (79.4% margin) and ROE 22.1%. The operating margin has declined from 68.1% to 61.6% to 56.2% across these periods. Liabilities to equity are 13.0%, cash is ₩226.6B and free cash flow is ₩117.6B. Borrowings are not available in the data.

Valuation

The current P/E is 9.1, P/B 1.8 and P/S 7.2; EV/EBITDA and dividend yield are not available. Year-end 2025 P/E was 10.8 and P/B 2.3, so both multiples are lower now. Among listed peers in the data, P/E ranges from 7.3 (Netmarble) to 50.5 (Hyundai Autoever), with Krafton at 10.9, PearlAbyss at 7.6 and NC at 7.4; P/B ranges from 0.5 to 5.1, with Shift UP's 1.8 in between. The valuation model (5-year DCF, 5.0% rate, based on TTM to H1 2026) gives a base estimate of ₩113,019 per share, with a bear case of ₩73,702 and a bull case of ₩195,314. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. Even the bear case is above the ₩30,050 share price, which mainly shows how sensitive such a model is to its inputs.

Catalysts

  • Half-year report (filed 2026-08-14) and preliminary consolidated earnings (2026-08-11) are the latest published results.
  • On 2026-09-10 the company filed a decision to terminate its trust agreement for own share acquisition, ending that buyback arrangement.
  • Two investor relations events were filed on 2026-07-20, along with an earnings-announcement notice.
  • On 2026-06-30 filings showed a change in the largest shareholder's holdings, an insider shareholding report and a 5%+ holding report, though details are not in the data.

Risks

  • Trailing revenue of ₩243.0B is below the 2025 figure of ₩294.5B, indicating that the earlier growth has not continued in the latest data.
  • Operating margin has fallen from 68.1% in 2024 to 56.2% on a trailing basis.
  • Trailing net income is well above operating income, so earnings may include non-operating items that may not recur; the data does not explain them.
  • The share price has dropped 24.9% in a year and flows, foreign ownership and short interest data are unavailable, limiting visibility on market positioning.
  • Model estimates are highly sensitive to assumptions, as shown by the wide bear-to-bull range of ₩73,702 to ₩195,314.

Closing view

The filings show a highly profitable, low-leverage company with ROE above 22% and a P/E of 9.1, lower than a year earlier and within the range of its peers. Against that, revenue and operating margin have both weakened on a trailing basis, the share price has declined, and several sentiment indicators are not available. The model estimate is far above the market price, but it depends on assumptions and should be read as one input rather than a conclusion.

Model estimate of fair value

Bear
₩73,702
+149%
Base
₩113,019
+282%
Bull
₩195,314
+561%

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 5%). 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)Shift UP: High Margins and Single-Digit P/E After a 24.9% One-Year Share Price Decline

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