[Edaily Reporter Shin Ha-yeon ] On the 5th, Value Finder, an independent research firm, assessed that Incross Co.,Ltd.(216050)saw a 48% year-over-year increase in third-quarter operating profit, driven by an expansion in large-scale advertising campaign contracts and cost efficiency. The firm analyzed that, as advertising growth is translating into improved profits—coupled with expectations for revenue from its artificial intelligence (AI) marketing platform and the year-end advertising peak season—the current stock price is extremely undervalued. It did not provide an investment recommendation or a target price.

Jeon Woo-bin, a senior analyst at Value Finder, stated in a report released today, “The company recorded consolidated third-quarter revenue of 15.2 billion won and operating profit of 5.4 billion won, achieving its highest quarterly operating profit since 2023.”

Incross Co.,Ltd.’s third-quarter revenue rose 16.6% year-over-year to 15.2 billion won, while operating profit increased 48.2% to 5.4 billion won. The operating profit margin stood at approximately 35.5%, reflecting profit growth that significantly outpaced revenue growth.

The advertising business was the driving force behind this improvement in performance. As the company secured more large-scale campaigns, particularly in the gaming industry and from public institutions, third-quarter advertising revenue reached 174 billion won, a 23.4% increase year-over-year. Advertising sales also rose by 20.3% to 13.4 billion won.

Researcher Jeon explained, “Driven by large-scale campaign wins in the gaming industry and from public institutions, advertising volume reached 174 billion won and advertising revenue hit 13.4 billion won, resulting in the operating leverage effect.”

Alongside the growth in the advertising business’s scale, cost efficiency also contributed to improved profitability. Analysts note that by reducing operating costs through company-wide AI transformation (AX) initiatives and management of direct business expenses, the increase in revenue translated into higher operating profit.

Incross Co.,Ltd. is an SK Group-affiliated integrated marketing company established in 2007 and listed on the KOSDAQ market in 2016. It operates digital advertising and e-commerce businesses; as of the third quarter, advertising accounted for 84.6% of revenue and e-commerce for 15.4%.

Recently, the company has been expanding its AI marketing platform business by leveraging data accumulated from its existing advertising and commerce operations. Its flagship service is “Stellarize,” an AI content marketing platform featuring over 7,000 creators.

Incross Co.,Ltd. launched “Stellize With,” a paid subscription service, in late September. The service provides creator reputation analysis and personalized content scenario generation, and is expected to add subscription-based revenue to the company’s existing revenue structure, which is centered on advertising agency and operational fees.

Researcher Jeon explained, “We are expanding the data and know-how accumulated through advertising and e-commerce operations into our AI platform,” adding, “Subscription revenue is set to be added to our revenue model, which has traditionally been centered on agency and operational fees.”

The company is also expanding its lineup of AI solutions. It is driving the automation and efficiency of advertising operations through the multi-Agent AI “iNova,” the campaign operation automation solution “i-flow,” and an AI risk sensing platform.

Researcher Jeon assessed, “By expanding our solution lineup, we are in the process of transforming into a full-fledged AI marketing company.”

Seasonal peak demand is also expected in the fourth quarter. The advertising industry typically considers the fourth quarter to be the busiest time of the year, as companies tend to concentrate their marketing budget spending toward the end of the year. Incross Co.,Ltd. is also projected to see a further improvement in its annual profits if the growth trend in the advertising sector and the cost-control measures observed in the third quarter continue.

The e-commerce business, which had been relatively sluggish, is also working toward a recovery. The company is seeking to increase transaction volume through major year-end promotions—such as Black Friday and SKTelecom’s “T Day”—as well as by expanding new agency services and advertising products.

Research Analyst Jeon stated, “The fourth quarter is the peak season every year when advertising spending is concentrated; if the growth in the advertising sector and the cost-control trend observed in the third quarter continue, the annual profit improvement is expected to be even greater.”

The company is also considered attractive from a valuation perspective. ValueFinder analyzed that, based on Incross Co.,Ltd.’s projected earnings for this year, its price-to-earnings ratio (PER) stands at 4.0x and its price-to-book ratio (PBR) at 0.4x. These figures fall short of the average PER of 6–8x for major domestic advertising agencies.

Last year, Incross Co.,Ltd. reported revenue of 50.5 billion won and operating profit of 11.5 billion won. Cumulative revenue for the first three quarters of this year totaled 37.3 billion won, with operating profit at 9.8 billion won. If the growth momentum in the advertising business continues through the fourth quarter, expectations for an improvement in full-year earnings are expected to rise.

Researcher Jeon emphasized, “Based on this year’s projected annual earnings, the stock remains in an extremely undervalued phase with a P/E ratio of 4.0x and a P/B ratio of 0.4x—levels that fall short of the average for major domestic advertising agencies,” adding, “We believe a revaluation is necessary.”