[Featured Stock] NCSoft Hits Another 52-Week Low Amid Earnings Decline Outlook

[Asia Economy Reporter Lee Seon-ae] NCSoft's stock price hit a 52-week low amid securities firms' forecasts that a decline in earnings is inevitable.

As of 9:25 a.m. on the 30th, NCSoft was trading at 359,500 KRW, down 7.46% from the previous day. It broke the previous 52-week low of 373,500 KRW once again.

The decline in NCSoft's stock price appears to be influenced by analyses suggesting that the company's Q2 earnings this year will fall short of market expectations. Jae-min Ahn, a researcher at NH Investment & Securities, stated, "NCSoft's expected Q2 revenue and operating profit are 649.9 billion KRW and 146.4 billion KRW, respectively," adding, "Operating profit is expected to fall below the previous estimate of 160.2 billion KRW and the market consensus of 165.1 billion KRW." Researcher Ahn also noted, "Sales of Lineage W, which was released six months ago, are showing a downward trend, making an overall revenue decline inevitable."

Some securities firms have lowered their target prices. Firms that reduced their target prices include NH Investment & Securities (600,000 KRW → 550,000 KRW), Samsung Securities (550,000 KRW → 440,000 KRW), and Cape Investment & Securities (610,000 KRW → 490,000 KRW).

Dong-hwan Oh, a researcher at Samsung Securities, diagnosed, "Currently, NCSoft is developing to expand genres and markets, but there is a time lag before new releases yield results," adding, "Since a profit decline may appear until the end of the year, it is necessary to adjust expectations for a stock price rebound."