Kiwoom Securities said on the 4th that for Netmarble, the novelty of its gameplay is not standing out amid a strategy focused on releasing many mobile games. The firm lowered its target price to 67,000 won from 69,000 won while maintaining its Outperform (market-beating) investment rating. Netmarble closed at 55,900 won in the previous trading day.
Netmarble is pursuing a consistent policy of releasing many mobile games. Recently, it has added some cross-play based on multi-platform support to broaden its buffer for margins and its user coverage.
Kim Jin-gu, an analyst at Kiwoom Securities, noted, "While gameplay that surpasses the fixed conventions of existing genres is not drawing attention, management and maintenance of the product life cycle (PLC) for key new titles are lacking."
Kiwoom Securities explained that RF Online Next and Seven Knights Re:Verse, both released this year, have recently fallen in sales rankings, and that in the case of Vampyr, it is also hard to see elements that go beyond the entrenched patterns of existing domestically developed massively multiplayer online role-playing games (MMORPGs).
Kim said, "Even for 'The Seven Deadly Sins: Origin,' which Netmarble assumes will be a key new title next year, it is uncertain from closed beta tests (CBT) and the like whether it can spark a new reaction among global users that surpasses the concepts and gameplay of existing similar genres."
Kiwoom Securities estimated that third-quarter operating profit this year will come in at 100.6 billion won, similar to the previous quarter, helped by initial sales from Vampyr.
Kim said, "There is a possibility of impairment losses related to Netmarble's intangible assets and goodwill at year-end, so it should be considered that annual non-operating profit and loss could be limited."