[Click eStock] "Netmarble, Q4 Profit Turnaround Expected... Target Price Up"

NH Investment & Securities raised the target price for Netmarble from 53,000 KRW to 68,000 KRW on the 5th.

Netmarble is estimated to record sales of 693.2 billion KRW and an operating profit of 5.4 billion KRW in the fourth quarter of this year. Compared to the same period last year, sales increased by 0.9%, and operating profit turned positive for the first time this year. Thanks to consecutive successes such as 'Stone Age (China)' in June, 'Tower of God: New World' in July, and 'Seven Knights Raising' in September, it is expected to achieve operating profit in the fourth quarter.

Additionally, new releases such as 'Arthdal Chronicles' are scheduled for the first half of next year. With many anticipated titles, a full-scale performance turnaround is expected next year.

The financial structure improvement following the sale of Hive shares in November is also positive. The 523.5 billion KRW from the sale of Hive shares was mostly used to repay borrowings.

An Jaemin, a researcher at NH Investment & Securities, said, "The operating loss is narrowing due to the effect of domestic new releases launched in the third quarter, and performance improvement is expected next year with a solid 2024 new lineup," adding, "Interest expenses will also decrease due to the improved financial structure following the sale of Hive shares."