[Click eStock] "FSN, APR's IPO Biggest Beneficiary"

Hanyang Securities analyzed on the 27th that FSN is the most undervalued listed company in terms of market capitalization among companies engaged in accelerator business similar to APR.

FSN is a comprehensive digital marketing group that was listed on the KOSDAQ market in 2015. FSN's core competency, integrated marketing services, provides advertising services across all areas required by advertisers. It offers various accelerating services such as marketing strategy, branding, and SNS marketing, achieving 300 clients and handling sales of 497.5 billion KRW as of 2022.

Lee Jun-seok, a researcher at Hanyang Securities, stated in a report on the same day, “FSN has grown new businesses from an advertising agency-centered business model and established a stable business portfolio. Until last year, it completed management efficiency improvements by integrating and liquidating several subsidiaries, and this year, it is reorganizing its existing accelerator business and new technology businesses such as AI, WEB 3.0, and blockchain separately, entering a new phase of company management.”

In particular, he focused on Boosters, FSN’s core accelerator subsidiary. Boosters conducts business investing in and collaborating with various brands. It is a revenue-sharing D2C commerce company. Major brands include Ringtee, Lemutong, Airleaf, and PlanB Bio.

In the case of Ringtee, sales grew significantly to around 47 billion KRW last year after Boosters’ equity investment and collaboration. Lemutong, which formed a partnership in November 2022, had monthly sales of about 210 million KRW at that time but recorded 2.16 billion KRW as of November last year, showing a 905% growth year-on-year.

Researcher Lee Jun-seok said, “Boosters has the technological capability to maximize the growth of undervalued brands like this,” and “This year, various product launches from partners such as natural light LED, plant-based collagen drinks, and hair loss shampoo are scheduled, which will establish a solid position within the comprehensive digital marketing industry through increased sales of existing products and sales from new products.”

Furthermore, he explained, “The new business is accelerating in earnest with the ‘Decision to Acquire Mediphron Divinity Shares’ announced on the 16th. Branding and platform businesses, including Boosters, will be operated by FSN, while new businesses such as AI, NFT, Blockchain, and STO will be conducted through Mediphron.”

He added, “Moreover, compared to APR, which operates a similar business model with a market capitalization of about 1.9 trillion KRW, the current market capitalization is considerably undervalued.”