[Click eStock] "Krafton, Battlegrounds Stable... Expectation for India Service Resumption"

Korea Investment & Securities Report

Korea Investment & Securities highlighted Krafton's stable profits. Expecting growth potential, it maintained a 'Buy' investment rating and a target price of 220,000 KRW.

On the 21st, Jung Hoyoon, a researcher at Korea Investment & Securities, stated, "Krafton's Q1 revenue this year is expected to be 479.6 billion KRW, down 8.3% year-on-year, and operating profit is expected to be 206.7 billion KRW, down 34.4%, in line with market expectations," adding, "China's Peacekeeper Elite is entering its peak season, which will lead to a rebound."

Researcher Jung emphasized, "The stock price has been sluggish due to the poor performance of the new title 'The Callisto Protocol' and low expectations for new releases. Nevertheless, this year requires attention." He explained, "First, the revenue stability of Battlegrounds is high, generating steady profits compared to other game companies, and the valuation burden is also low. Positive events such as the resumption of Battlegrounds service in India can be expected this year."

He added, "With the resumption of new releases next year, Krafton has made equity investments in Swedish developer Neon Giant and Polish game company People Can Fly to expand external game publishing recently," emphasizing, "As time passes, attention should be paid to the results of various ongoing activities."