Yuanta Securities Korea on the 8th said Krafton's traffic and profitability for its Battlegrounds (PUBG) intellectual property (IP) could keep growing on the success of a well-made mode. It maintained a Buy rating and raised the target price 17% to 350,000 won from 300,000 won. The previous day's closing price was 270,000 won.
Krafton posted first-quarter revenue of 1.3714 trillion won and operating profit of 561.6 billion won this year. Korea Investment & Securities Co. said revenue and operating profit rose 57% and 23%, respectively, from a year earlier, beating market estimates (consensus).
Lee Chang-young, a researcher at Yuanta Securities Korea, analyzed that after the Apr. 8 update, the PUBG IP surpassed 1 million in peak concurrent daily users and showed high revenue efficiency in "Stellar Blade" Part 2 Contender.
The researcher said, "The number of users for the "Xeno Point" mode increased net without cannibalizing traffic from existing battle royale players, confirming that a well-made mode can lead to structural growth in traffic," and noted, "The PUBG IP's traffic and profitability can continue to grow."
The researcher emphasized that the success of the well-made mode proved the PUBG IP can keep growing in both traffic and profitability.
The researcher explained, "On the 13th, a mode based on the 'PAYDAY' IP, which has high recognition in the West, is set to launch, and additional well-made modes and UGC are also set to expand within the year," adding, "On the 14th, Subnautica 2 Early Access is scheduled for release, and Steam's 'Most Wished Upcoming Game' has held No. 1 for seven months."
The researcher said, "Based on Krafton's powerful global IP PUBG, stable results can provide the backdrop to wait for new hit momentum through multiple new releases next year."