[Click eStock] "DevSisters, Disappointing Performance in China but New Releases Expected... Target Price '↓'"

Daol Investment & Securities analyzed on the 24th that although Devsisters' performance in entering the Chinese market was disappointing, it could be compensated through new releases. The investment opinion was maintained as 'Buy,' but the target price was lowered to 54,000 KRW.

Daol Investment & Securities expected Devsisters' revenue in the fourth quarter of last year to record 41.2 billion KRW, a 16% decrease compared to the same period the previous year. The operating loss was expected to narrow to 12.3 billion KRW.

Kim Hajung, a researcher at Daol Investment & Securities, said, "The release of 'Cookie Run: Kingdom' in China, which was expected to be delayed until this year, took place at the end of last year," adding, "Devsisters' performance is heavily influenced by its results in China." He also added, "The Chinese sales of Cookie Run: Kingdom fell short of market expectations, which caused a sharp drop in the stock price."

However, Kim's opinion is that expectations for new releases remain alive. He explained, "We look forward to the results of the new title 'Cookie Run: Tower of Adventures,' which is undergoing a closed beta test (CBT) from the 19th of last month until the 4th of next month," adding, "Compared to G-Star, the improved controls and difficulty design have enhanced the satisfaction of gameplay."

He said, "The upward trend in Devsisters' stock price after the CBT reflects expectations for the performance of Tower of Adventures," and added, "In addition, the casual puzzle game 'Cookie Run: Witch's Castle' is scheduled to be released in the first quarter of this year."