Korea Investment & Securities Co. on the 24th said that if all scheduled new titles from Kakao Games are released, the company could swing to a profit next year, but warned investors to be cautious because scheduling uncertainties have surfaced since this year. It maintained a Hold rating. Kakao Games' previous closing price was 15,300 won.
Korea Investment & Securities Co. said this year was difficult for Kakao Games in many ways. Jeong Ho-yoon, an analyst at Korea Investment & Securities Co., said, "With Odin as the flagship, the game portfolio saw sales steadily decline as intensifying competition overlapped with natural user attrition," and noted, "Project Q, Project C, and ArcheAge Chronicle, which had been scheduled for release in 2025, were delayed."
It said that despite efforts to improve profitability through steady restructuring and the sale of noncore business units, fundamental competitiveness was damaged, accompanied by weak earnings and a falling share price.
Kakao Games is preparing to launch a variety of new titles next year. In the first half, it plans to release Project Q, the most anticipated title, and in the second half, it is preparing to launch Project QQ and ArcheAge Chronicle.
Jeong said, "However, given that Kakao Games frequently showed overall delays in new title release schedules even in 2025, it would be advisable to confirm the schedule and time investments accordingly."
Jeong added, "If all the anticipated scheduled new titles are released, the company is expected to achieve a meaningful turnaround to profit from the second half of next year, but since it has shown that uncertainties related to schedules have been significant since this year, caution is needed against making hasty investments."