[Click eStock] "Kakao Games Expected to Increase Operating Profit by 56% This Year"

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Investment & Securities evaluated Kakao Games as having the richest momentum within the industry due to new releases scheduled every quarter. The investment opinion was 'maintained', and the target stock price was kept at 54,000 KRW.

Researcher Kim So-hye of Hanwha Investment & Securities stated, "This year, sales are expected to increase by 20.3% compared to the previous year, reaching 1.38 trillion KRW, and operating profit is projected to rise by 56% to 277.1 billion KRW."

The subculture game EverSoul, released on the 5th, is currently recording an average daily revenue of about 400 million KRW. Researcher Kim evaluated, "The release of ArcheAge War, which is currently accepting pre-registrations, is mentioned for the end of the first quarter, and in the second quarter, the mobile MMO Ares: Rise of Guardians, and in the third quarter, the mobile RPG Guardians Order are scheduled for release, making the new game lineup the richest within the industry."

This year, along with new releases, plans for regional expansion of existing IPs are expected to be concretized. Researcher Kim predicted, "The release of Odin in Japan, North America, and Europe, as well as EverSoul's release in Japan, are planned. In particular, the success of EverSoul in Japan, where the subculture genre is highly popular, is somewhat promising."

Researcher Kim stated that the current valuation is not low, with a price-to-earnings ratio (PER) of 19 times based on this year's performance. He analyzed, "The sales trend of existing live games has entered a stabilization phase, and with new releases scheduled every quarter, there is a lot of momentum." He added, "In the short term, the stock price momentum will be determined by the February showcase and the March official release of ArcheAge War."