[Click eStock] "Netmarble, New Game Momentum to Get Stronger"

IBK Investment & Securities Issues 'Buy' Rating and Sets Target Price at 130,000 KRW... Closing Price on 7th at 97,300 KRW

Netmarble's 'A3: Steel Alive' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that Netmarble's new game momentum will become even stronger.

According to IBK Investment & Securities on the 8th, Netmarble's first-quarter earnings are estimated at 560.6 billion KRW in sales and 49 billion KRW in operating profit. These figures represent increases of 17.4% and 44.5% respectively compared to the previous year.

Lee Seunghoon, a researcher at IBK Investment & Securities, explained, "In the first quarter, we offset the decline in sales of existing games by successfully launching 'The Seven Deadly Sins' globally and 'A3: Still Alive' in the domestic market," adding, "Their success has allowed us to have a diverse game portfolio."

This year, new game momentum is expected to continue. In the second quarter, titles such as 'Blade & Soul: Revolution', 'Marvel Realm of Champions', and in the second half, Seven Knights intellectual property (IP), BTS IP games, and 'The Second Country' are scheduled to be released.

The researcher said, "Blade & Soul, Marvel, and BTS IPs have high recognition in the global market, so we judge that there is a high possibility of success overseas," and added, "'The Second Country' is being developed by Netmarble Neo, which developed 'Lineage 2: Revolution', in collaboration with Japan's Level 5, and since it is an IP with high recognition in Japan, global success is expected."

IBK Investment & Securities gave Netmarble a 'Buy' investment rating with a target price of 130,000 KRW. The closing price on the 7th was 97,300 KRW. Researcher Choi said, "More than eight games will be released domestically and internationally this year, and Coway's earnings will be reflected in non-operating income from the end of the first quarter, so stable profits are expected," and analyzed, "Although the release schedule for upcoming new games has not been finalized, as major titles are expected to be released in the second half, investment sentiment is expected to steadily improve."