[Special Stock] Dotmill, Unlisted Competitor Valued at 1 Trillion Won... Undervalued K-Content Company

Dotmill is showing strong performance. It is interpreted that the analysis by securities firms, which described it as an undervalued K-content company, had an impact.

As of 10:41 AM on the 31st, Dotmill was trading at 5,420 KRW, up 310 KRW (6.07%) compared to the previous trading day.

Dotmill is an immersive media company with references including the Pyeongchang Olympic opening and closing ceremonies and concerts by the group BTS. Seunghan Choi, a researcher at Shinhan Investment Corp., said, "Based on the collaboration reference with BTS concerts, discussions are underway to collaborate with top-tier K-pop groups," adding, "We expect to create immersive media in hundreds of theme parks worldwide through collaboration with Merlin."

Shinhan Investment Corp. forecasted that Dotmill's sales and operating profit this year will increase by 67.1% and 171.4% year-on-year to 42.4 billion KRW and 5.3 billion KRW, respectively. He said, "We expect performance momentum due to deferred revenue from the previous year and high growth in B2C," and evaluated, "The overhang is 34.5% immediately after listing and 23.5% after one month. Since the over-the-counter corporate value is significantly lower, the overhang burden is premature until the stock price rises meaningfully."

He emphasized, "The expected price-to-earnings ratio (PER) for this year is only 8.9 times," adding, "Although it is the only profitable company in the industry, it has been excessively undervalued due to the absence of peer listed companies." He further added, "Considering that the value of the over-the-counter company District Korea is 1 trillion KRW, it is time for the market to re-evaluate."