[Featured Stock] Stock Price Rises 60% Over Last Five Days
Harsh Debut with IPO Price Below on First Trading Day
Revival Gained Attention for Hybrid Database Management System Scalability
References Include Samsung SDI, SK Hynix, Intel, Ericsson
[Asia Economy Reporter Hyungsoo Park] Bitnine, which went public last November, is gaining attention in the domestic stock market. Although it started below the IPO price on the first day of listing, its high technological capability and the rapid growth of the graph database (GDB) market have highlighted its undervaluation appeal.
According to the financial investment industry on the 4th, Bitnine's stock price has risen more than 60% over the past five days.
Founded in 2013, Bitnine is the only specialized graph database technology company in Korea. Its main business areas are supplying licenses for graph DB products and providing graph DB-based data analysis solutions. Bitnine developed the world's first hybrid database management system (DBMS) that combines relational databases and graph databases. It is the only company in Korea that possesses graph DBMS technology.
The recent sharp rise in stock price is driven by expectations that Bitnine will be promoted to a Top Level Project (TLP) within the Apache Project, the world's largest open-source foundation. Bitnine's Apache AGE is the only global product that enables the use of graph databases on all relational database platforms. After the top-level promotion, the company plans to launch a commercial version.
Graph data refers to a set connected by nodes and edges, a data structure most useful for expressing relationships (edges) between all entities (nodes). Graph databases allow the most intuitive understanding of relationships between entities, and their operation speed is significantly faster compared to relational databases. As the utilization of data has increased recently, graph databases have become one of the core technologies in the 4th industrial revolution markets such as artificial intelligence, big data, blockchain, and metaverse. Global giants like AWS, Google, Meta, and MS already provide various services based on this technology.
The company introduced that AgensGraph uniquely implements hybrid query processing technology, allowing the simultaneous use of the Cypher language, which controls graph data, and the international standard SQL used in existing relational databases, as shown below. They hold related patents for this technology.
In the LDBC test, which benchmarks data processing speed between linked data, Bitnine compared its performance with Neo4j, a global leader in the graph database field. The Cypher query processing performance showed significantly faster speeds. Recently, the KOLAS certification body also conducted and officially certified a performance comparison test with Neo4j, objectively proving the performance. The company also holds patents related to high performance.
Researcher Jongseon Park of Eugene Investment & Securities explained, "It has proven technology at least 10 times faster than the global No.1 company," adding, "Based on its technology, it holds various global references including domestic companies such as Samsung SDI and SK Hynix, as well as Intel, Ericsson, and the Canadian Ministry of Defense." He continued, "It is incubating within the Apache Project, the world's largest open-source foundation, and plans to release a commercial version (Apache AGE) in April next year," emphasizing, "The product launch is a positive factor for rapid penetration into the global market."
Jangyeol Kim, Head of Research Center at Sangsangin Securities, also said, "Bitnine's promotion is expected soon," adding, "Many global companies promoted to Top Level Projects have been recognized for their technology and value and subsequently experienced significant growth."
He further analyzed, "The market capitalization of MongoDB, a global peer company listed on NASDAQ, is 39 trillion KRW with a price-to-sales ratio (PSR) around 40 times," and "Neo4j, which is preparing for listing, recently had a corporate valuation of 2.8 trillion KRW based on recent investment, with a PSR of 30 to 40 times."
Kim emphasized, "Bitnine's AgensGraph is known to be 10 times (8 Update Queries) to 20 times (7 Short Queries) to 50 times (14 Complex Queries) faster in processing speed compared to Neo4j."
He said, "The global GDB market is an industry growing at an average annual rate of 25% from 2018 to 2022," adding, "Applying a PSR of 15 times, which is a 50% discount from the PSR of peer companies, suggests a potential rise of more than double the current stock price, reaching 31,900 KRW."
Kim added, "Graph technology is expected to expand its use as a core technology of hyperconnected intelligent platforms in the hyperconnected intelligent information society," and "It is a key technology for analyzing data in areas such as secondhand trading, peer-to-peer lending, and online financial services."
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