FnGuide is showing early gains on expectations of improved earnings as Korea's exchange-traded fund (ETF) market expands.
As of 9:49 a.m. on the 22nd, FnGuide was trading at 22,600 won on the KOSDAQ market, up 1,850 won (8.92%) from the previous session. The stock's strength is seen as being driven by analysts' views that growth will continue following strong earnings.
Eugene Investment & Securities said FnGuide is expected to set a new quarterly record on the back of ETF market growth.
Park Jong-seon, a researcher at Eugene Investment & Securities, said, "On a consolidation basis, third-quarter revenue will be 15.8 billion won and operating profit 8.3 billion won, up 88.1% and 207.3%, respectively, from a year earlier," and added, "We expect to again achieve the highest quarterly revenue and operating profit."
Second-quarter results also beat market expectations. FnGuide disclosed in a preliminary earnings report the previous day that it posted second-quarter revenue of 14.9 billion won and operating profit of 7.9 billion won. This marked the highest-ever quarterly revenue and operating profit, surpassing the market consensus by 5.8% and 14.0%, respectively.
The securities industry said the expansion of the ETF market is driving the improvement in earnings. With Korea's ETF net assets surging from 210 trillion won to 512 trillion won in one year, FnGuide's market share has also expanded, and assets under management (AUM) in its index business are estimated to have increased significantly.
Park explained, "As the share of the high-margin index business has expanded, the operating margin has improved sharply," and added, "Although ETF net assets have recently decreased somewhat, the market is expected to grow again, led by theme ETFs, so growth in the index institutional sector will continue."
Park added, "As overseas investors' interest in domestic corporations increases, revenue in the financial information services institutional sector will also grow," and said, "Along with revenue growth, the company will maintain top-tier profitability."
Eugene Investment & Securities said FnGuide's current share price is trading at around 9.5 times the 2026 expected price-earnings ratio (PER), a discount versus the average of major domestic software firms, and assessed that the valuation appeal remains high.