[Click eStock] "NCSoft, New Release Imminent... Focus on Diversifying Revenue Sources"

Daishin Securities Report

[Asia Economy Reporter Minji Lee] Daishin Securities maintained a buy rating and a target price of 1.2 million KRW for NCSoft on the 4th, expecting increased earnings stability due to diversified revenue streams from multiple games.

The release dates for Lineage 2M in Taiwan and Japan and Trickster M in Korea have been set for March 24 and 26, respectively. Lineage 2M is based on the Lineage 2 IP, which has relatively higher overseas recognition compared to the Lineage IP, raising expectations for success in overseas markets. The Japanese market, where Netmarble's Lineage 2 Revolution previously succeeded, is expected to show favorable performance for Lineage 2M as well. Initial daily sales are projected at 500 million KRW in Taiwan and 1 billion KRW in Japan for Lineage 2M.

The most anticipated title in the first half of the year, Blade & Soul 2, has been accepting pre-registrations since the 9th of last month. With 2 million pre-registrations gathered within 18 hours of launch, interest appears to be high. Minah Lee, a researcher at Daishin Securities, explained, “Pre-marketing activities such as new video releases are underway ahead of the launch. Blade & Soul 2 is scheduled for release between late April and early May, which is expected to strengthen the new release momentum in the second quarter.”

Many new projects, yet to be disclosed, are expected to be revealed this year and next. There is a high possibility of unveiling Aion 2, a mobile MMORPG utilizing existing PC IP, and Project TL, which is being developed for PC and console versions. Additionally, games for next-generation console platforms are also understood to be in development.

Researcher Minah Lee stated, “In the short term, stock momentum will inevitably depend on the overseas release performance of Lineage 2M and the success of Blade & Soul 2, but in the long term, multiple lineups are expected to be added, driving revenue growth.” She added, “While stock price volatility may increase once the excitement from new releases fades, it is important to approach from a long-term perspective rather than focusing on short-term momentum.”