Shinhan Investment Corp. noted on 24th that NEOWIZ's large intellectual property (IP) focused strategy has shown results, leading to high market expectations for the download content (DLC) of "P's Lies." It maintained a target price of 28,000 won and an investment opinion of "buy." NEOWIZ's closing price on the previous trading day was 23,200 won.
Shinhan Investment Corp. expects NEOWIZ's operating revenue and operating profit for the first quarter of this year to be 9.26 billion won and 880 million won, down 4.6% and 40.9%, respectively, from the previous year. Operating profit is higher than the average securities industry forecast of 680 million won.
Kang Seok-oh, a senior researcher at Shinhan Investment Corp., explained, "Following the release of P's Lies, the estimated monthly sales volume ranges from 100,000 to 200,000 units, and the web board games are also showing solid performance." He added that the subculture IP "Brown Dust 2" is gaining momentum by addressing complaints and is expected to see nearly double growth compared to last year due to the 1.5th anniversary update. Additionally, they are increasing their cash cows that elevate the annual performance low, including "Cats and Wasps" and "The Legend of Heroes."
Researcher Kang estimated that the DLC for P's Lies is expected to be released in June. Researcher Kang said, "Shortly after the DLC release, total sales, including the main game, will reflect over 700,000 units, and it appears marketing will be conducted through the orchestra held last March as well as the upcoming game show."
He continued, "The expectation for the self-created subculture IP's return and the release of P's Lies DLC has begun to be reflected in the recent stock price," but added, "While large IP development results have been proven, expanding the lineup and improving the organization will take time."