MERITZ Securities analyzed on the 18th that all of the new titles contributing to Netmarble's key performance in the second quarter are concentrated in Korea, predicting extremely high marketing efficiency. It maintained a 'neutral (hold)' investment opinion and set a target price of 60,000 won. Netmarble's previous closing price was 60,000 won.
MERITZ Securities estimated that Netmarble's consolidated second-quarter revenue and operating profit would each be 714.3 billion won and 89.3 billion won, respectively. This surpasses market estimates.
Lee Hyo-jin, a researcher at MERITZ Securities, said, "Titles released in May, 'Seven Knights: Reverse,' and late March, 'RF Online Next,' contributed, while the mega intellectual property (IP) 'Game of Thrones: King's Road' has failed to gain traction."
The new titles that contributed to the key performance in the second quarter are all expected to be limited to releases in Korea, predicting extremely high marketing efficiency.
This researcher noted, "New titles are concentrated in mobile RPGs and focused on domestic releases, where marketing channels are well established, achieving strong results in the second quarter," adding that among major works in the second half, 'Vampire' is also expected to contribute similarly, leading to an upward revision of related earnings.
Netmarble released four new titles in 2023 and five in 2024. Following three releases in the first half of this year, three additional new titles are expected to be released in the second half. The global closed beta test (CBT) for 'The Seven Deadly Sins: Origin,' which has not yet taken place, is expected to be released in 2026.
This researcher commented, "While a higher new title success rate compared to the past is positive, the fact that these results are limited to domestic markets is somewhat disappointing, and since they are concentrated on the weakest mobile RPGs and social casino games globally, stock price increases are likely to be slow in relation to performance improvement."
He further analyzed, "Efforts to enter the global PC and console markets must accompany this to escape from valuation derating."
However, it was noted that the recent amendment to the Commercial Act has reduced the likelihood of a listing for Netmarble Neo, which is seen as easing investor burden.