[Click eStock] "Rongtu Korea, Expecting Record High Performance Next Year"

[Asia Economy Reporter Yoo Hyun-seok] Sangsangin Securities analyzed on the 30th that Longtu Korea is expected to achieve record-high performance next year. No investment opinion or target price was provided.

Sangsangin Securities judged that Longtu Korea's net profit will turn positive starting from the fourth quarter of this year, marking the beginning of a turnaround. Researcher Lee Jong-won of Sangsangin Securities said, "Next year, six new major IP-centered games, including the MK Project, are scheduled to be released," adding, "It is expected to achieve the highest annual performance, and it is likely to emerge as a rising powerhouse in publishing. A formal update will be provided after reviewing the release schedule of next year's new lineup."

In particular, Sangsangin Securities emphasized the need to focus on the numerous IPs secured by Longtu Korea. He said, "Longtu Korea provides IPs for which it holds copyrights to game developers and recognizes a portion of the game revenue generated using these IPs as royalty sales," adding, "This means that royalty income from the sales of its parent company, Longtu Games, is possible."

He continued, "They have secured various pipelines for Asia and global markets. Although there have been difficulties such as business restructuring, it is expected that sourcing of well-known IPs will continue, leading to growth in royalty sales," emphasizing, "The strength of the IP business led by Longtu Korea is that it does not require separate development costs, allowing immediate operating profit increase after game launches." He further evaluated, "Because of this, although there are not yet many S-class mega-hits, the business structure is stable with the top-line steadily accumulating with each new game release."