[Click eStock] "NCSoft, Lineage 2M Overseas Launch Anticipated... Target Price 1,150,000 KRW"

[Asia Economy Reporter Ji Yeon-jin] Hyundai Motor Securities announced on the 20th that it is raising the target price of NCSoft by 9% to 1.15 million KRW due to expectations for new releases scheduled for the first half of this year.

NCSoft recorded sales of 565.5 billion KRW in the fourth quarter of last year, a 5.9% increase year-on-year, and operating profit of 172.1 billion KRW, up 24.9%. While this met market expectations, sales decreased by 3.4% compared to the previous quarter, and operating profit is expected to decline by 19% quarter-on-quarter due to one-time expenses such as employee incentives and baseball team championship bonuses.

However, the release of Blade & Soul 2 in the first quarter and the overseas launch of Lineage 2M are proceeding as planned, and Lineage 2M is currently accepting pre-registrations aiming for simultaneous release in Taiwan and Japan starting from the 8th of this month.

Hyun-yong Kim, an analyst at Hyundai Motor Securities, said, "With the release of Lineage 2M in Japan and Taiwan, direct publishing in both countries is planned, which is expected to significantly increase revenue contributions compared to previous overseas expansions. Around the fourth quarter, momentum from the visibility of Aion 2 and Project TL will be added, and the content platform will also be a key point to watch for valuation rerating."

The content platform Universe, scheduled to launch in the first half of this year, has surpassed 3 million pre-registrations, with 73% of pre-registrants overseas, overwhelmingly more than the 27% domestic registrations. Universe, a K-POP specialized platform, currently has over 10 artist teams, including IZ*ONE, AB6IX, Kang Daniel, Park Ji-hoon, Monsta X, The Boyz, WJSN, and (G)I-DLE. Since Universe is clearly trying to attract CJ affiliates, Kakao, and smaller agencies outside the existing Big 4 entertainment groups, the successful landing of the platform business is expected to be a key factor in the reevaluation of NCSoft's stock price.