SK Securities analyzed on the 17th that the new releases coming out at the end of this year from NCSOFT target a global user base, and if they succeed in their performances, it could provide an opportunity for valuation expansion. They raised the target stock price from the previous 230,000 won to 250,000 won, maintaining an investment opinion of 'buy.' The closing price of NCSOFT on the previous trading day was 212,000 won.
SK Securities projected that in the second quarter of this year, NCSOFT's revenue and operating profit will record 334 billion won and 4.2 billion won, respectively, down 9.4% and 53.1% compared to the previous year. The operating profit is expected to fall below the brokerage firm's forecast of 6 billion won.
However, the decline in mobile game revenue is stabilizing, and 'Lineage M' is expected to reflect a rebound in revenue after its update on the 18th of last month in the third quarter of this year.
Expectations for the new title 'Aion 2' are also rising. Nam Hyo-ji, a researcher at SK Securities, noted, 'Since April, the stock price has continued to show a solid trend,' adding, 'Aion 2 received positive evaluations during its first live broadcast on May 29 and is increasing expectations.' SK Securities reflected that this new release is set to launch in November of this year, with daily sales of 1.5 billion won in the fourth quarter and total annual sales of 328.5 billion won.
Researcher Nam stated, 'In the second half of this year, marketing activities for the new releases set to launch in the fourth quarter will be actively developed,' and said, 'We will aggressively utilize global game shows such as Gamescom on August 20 and the Tokyo Game Show in September.'
He continued, 'If the user base has been concentrated in the domestic and Asian markets until now, the new releases coming out at the end of this year target a global user base, which could be an opportunity for valuation expansion.'