Shinhan Investment & Securities on the 13th said Pearl Abyss(263750) faces a gap before the next release and results below the consensus (market average forecast), making a short-term rebound in the share price unlikely. It lowered its investment view to "neutral (Hold)." Pearl Abyss closed at 31,550 won the previous day.
Pearl Abyss shares surged right after the launch of the new title "Crimson Desert" on a sales surprise. However, Shinhan Investment & Securities said a short-term rebound in the share price will be difficult due to the gap before the next release and weak results.
In the second quarter this year, Pearl Abyss posted operating revenue of 192.6 billion won, up 142.1% from a year earlier. Operating profit swung to a surplus at 67.6 billion won, with an operating margin of 35.1%. Operating profit fell short of the 140.2 billion won consensus.
The new title "Crimson Desert" sold 2.11 million copies in the second quarter. However, some revenue was deferred due to settlement procedures for physical package sales.
Kang Seok-oh, an analyst at Shinhan Investment & Securities, said, "Black Desert maintained solid revenue thanks to update effects, and personnel expenses came to 74.8 billion won due to performance bonuses following the launch of 'Crimson Desert,'" adding, "Now that the new release has wrapped up, hiring in 2026 will be run conservatively."
Operating profit estimates for this year and next were revised downward. Kang said, "We reflected the higher share of offline package sales, which have relatively lower profitability and lead to revenue deferrals, the faster-than-expected pace of sales declines, and the payment of performance bonuses," adding, "We are cutting operating profit estimates by 35% for 2026 and 57.5% for 2027."
The annual guidance was also lowered to about 40% of the previous quarter's level.
Kang projected, "A short-term rebound in sales is possible with downloadable content (DLC) and platform expansion, but as time remains until additional disclosure of new title information, market interest as a game stock will wane."
DLC for "Crimson Desert" is planned for release within the year, and the launch timing is set to be announced in the third quarter. The company also plans to expand the platform to Nintendo Switch 2 in the first half of next year.
The new title "DokeV" is under development targeting a launch in the second half of 2028, and development staff from "Crimson Desert" are moving over. From the second half of 2027, marketing, including demos for "DokeV," is scheduled to begin.
Kang said, "We are revising the expected launch timing for 'DokeV' from the second quarter of 2028 to the third quarter of 2028 and lowering the 2028 performance estimate."