[Click eStock] "Joycity, Focus on Continued Profit Growth Trend"

[Asia Economy Reporter Park Jihwan] Samsung Securities maintained a 'Buy' investment rating and a target price of 12,000 KRW for Joycity on the 26th, stating that its profit growth trend continues.

Odonghwan, a researcher at Samsung Securities, said, "Due to increased sales of existing titles, first-quarter sales and operating profit are expected to increase by 11.4% and 31.2% respectively compared to the previous quarter," adding, "Although the effect of new releases has been postponed until next year, operating profit growth of around 50% is expected this year solely from increased sales of existing titles." He explained that the valuation attractiveness is considered sufficient compared to the stable growth potential.

He explained, "Sales of the Freestyle series increased by 33.9% quarter-on-quarter due to the Chinese Lunar New Year peak season effect, and in the war simulation genre, sales grew by 4.4% as growth continued for Pirates of the Caribbean and Gunship Battle: Total Warfare." BlessM also saw sales increase by about 1 billion KRW due to the global launch effect.

Lifecycle expansion and overseas release expectations for BlessM; the Chinese Lunar New Year effect on Freestyle is expected to decline in the second quarter. Sales growth in war simulation games continues, and BlessM's release in Japan and Taiwan is scheduled for May and June, so sales growth is expected to continue in the second quarter.

Researcher Oh emphasized, "Quarterly operating profit rose to the 7 to 8 billion KRW range due to lifecycle expansion of existing titles and the effect of new releases," adding, "Operating profit growth close to 50% compared to last year is expected this year."