DS Investment & Securities has lowered the target price for KRAFTON to 500,000 won. Although the second-quarter performance met market expectations, the decrease in non-operating profits and the delay of subsequent game releases were taken into consideration. The investment opinion remains at "buy."
On the 30th, DS Investment & Securities announced that KRAFTON's consolidated revenue for the second quarter was 662 billion won, a 6.4% decrease compared to the same period last year. Operating profit was 246.1 billion won, down 25.9% from a year earlier.
Choi Seung-ho, a researcher at DS Investment & Securities, noted, "This was the expected performance due to the off-season," adding that "if there is no sharp rise in the exchange rate, this year's non-operating profit is expected to plunge to 70 billion won from 540.2 billion won last year."
This year, KRAFTON actively engaged in M&A, aiming to expand its institutional sector; however, the delay of the anticipated game "Subnautica 2" to next year also influenced the lowering of the target price.
There are no major new releases scheduled to be announced at Gamescom, a large game show, making it difficult to expect short-term momentum for new titles.
Choi noted, "Considering the delay of Subnautica 2, we have lowered this year's operating profit estimate from 1.4 trillion won to 1.3 trillion won," while also assessing that "aggressive business expansion is positive."