[Click eStock] "Longtu Korea to Launch NFT System Game Next Year... Expecting Significant Growth"

[Asia Economy Reporter Hyunseok Yoo] SangSangIn Securities analyzed on the 3rd that Longtu Korea is expected to experience significant growth with the launch of an NFT system game next year and the acquisition of multiple new IPs. No investment opinion or target price was provided.

SangSangIn Securities forecasted that Longtu Korea will release its most anticipated titles and various new works next year. Jongwon Lee, a researcher at SangSangIn Securities, stated, "Next year, several new IPs, including the major titles 'Bless Eternal' and 'Yeolhyeol Gangho for Wemix,' are expected to be released, totaling three to four new IPs. We anticipate that the performance of the new lineup will complement the existing main IPs."

He added, "The expansion of royalty income from Longtu Games' sales and the potential increase in operating profit through various pipelines targeting Asia and global markets suggest that sales volume will expand starting from the second quarter, driven by the launch of large-scale IP lineups such as NFT games next year. We expect continuous sourcing of well-known IPs in the future, which will lead to growth in royalty revenue."

He also mentioned, "In 2020, Longtu Korea established a strategic partnership with Wemade Tree (worth 4 billion KRW, securing a 10% stake), participating directly and indirectly in the blockchain game business. Through this MOU, existing IPs and upcoming new games are expected to be released in a form compatible with Wemix's NFT system."