SK Securities said Netmarble's current share price is undervalued, considering this year's earnings growth and active shareholder returns. It maintained a target price of 79,000 won and a "buy" rating. Netmarble's closing price in the previous trading session was 50,800 won.
Last year, Netmarble posted revenue of 797.6 billion won and operating profit of 110.8 billion won. Those figures rose 14.6% and 21.9% from the previous quarter. It was also the highest quarterly revenue on record.
Along with the seasonal peak effect for overseas games, the geographic expansion of existing titles performed well. Nam Hyo-ji, an SK Securities researcher, said, "Outside operating profit, an impairment loss on intangible assets occurred due to the shutdown of 'King Arthur,' resulting in a net loss," and noted, "Personnel costs increased due to incentive payments, and marketing expenses rose with regional expansion, but fees decreased as the share of PC payments expanded."
Nam said, "In the first half, Netmarble needs to prove its performance through the success of 'The Seven Deadly Sins: Origin' and 'MONGIL: STARDIVE,'" and explained, "Because overseas subsidiaries only began introducing PC payments starting last year, further fee reductions are possible this year as well."
Netmarble also said on the 5th that, along with its results, it will completely cancel its treasury shares (4.7%), increase dividends in 2025, implement a new shareholder return policy for the next three years, and monetize its HYBE equity.
Nam said, "Considering not only earnings growth from new releases this year but also an active commitment to shareholder returns, the current share price level appears undervalued," and picked it as the top pick in the sector.