Eugene Securities evaluated on the 7th that Netmarble's new game sales have decreased, making its growth prospects uncertain. The investment opinion was maintained as 'Hold,' and the target price was lowered from 58,000 won to 46,000 won. Netmarble's previous trading day closing price was 41,650 won.
Netmarble's first-quarter performance is projected to have sales of 604 billion won and an operating profit of 31.5 billion won. These figures represent an increase of 3% and 753%, respectively, compared to the same period last year, and the operating profit is expected to slightly exceed the consensus estimate of 30 billion won.
Research Institute member Jeong Ui-hun analyzed, "The 'Naho-rep,' which significantly contributed to last year's performance growth, is expected to continue its sales decline in the first quarter following drops in the third and fourth quarters." He added that Naho-rep's sales for the third quarter were about 84 billion won and approximately 39 billion won for the fourth quarter.
However, Research Institute member Jeong noted that the sales of 'Marvel COC,' which bounced back in the fourth quarter due to its 10th-anniversary event, are also projected to decline in the first quarter.
At the same time, Research Institute member Jeong analyzed that regarding the new multi-user online role-playing game (MMORPG) 'RF Online Next' released on the 20th of last month, considering it reached the top daily sales positions in the App Store and Play Store in 2 days and 6 days, respectively, it will have a meaningful sales contribution effect even in a short period.
He pointed out that securing intellectual property (IP) capable of generating stable revenue is the most important factor for a rebound in Netmarble's stock price this year. Research Institute member Jeong explained, "Although 'Naho-rep,' released last year, was a huge success globally at its launch, it quickly declined in sales afterward, showing a failure to sustain IP revenues over the long term," and added, "This year, securing intellectual property (IP) that can not only succeed in sales among a lineup of various new games (four in the first half and four in the second half) but also generate stable revenue over the medium to long term will be a crucial factor for a rebound in stock price."