[Featured Stock] 'Surprise Earnings' Krafton Rises Over 4%

Shares of Krafton, which posted surprising earnings in the fourth quarter of last year, are on the rise on the 13th. As of 2:35 PM on that day, Krafton's stock price on the KOSPI market was trading at 223,500 KRW, up 9,500 KRW (4.44%) from the previous trading day.

Survival shooting game Battlegrounds created by Krafton

Krafton's recently disclosed fourth-quarter revenue for last year was 535 billion KRW, a 13% increase compared to the same period the previous year, and operating profit was 164 billion KRW, up 30%. Both figures exceeded market expectations by 23% and 49%, respectively. In particular, PC revenue recorded 167 billion KRW, rising about 20% and surpassing estimates by 45%. Mobile revenue reached 343 billion KRW, increasing 35% and beating expectations by 18%.

On the same day, Heeseok Lim, a researcher at Mirae Asset Securities, said, "There is no reason not to buy Krafton stock," raising the target price by 10% from the previous 300,000 KRW to 330,000 KRW. He added, "The preliminary results announced at the end of November last year dispelled market speculation that 'there might have been one-time factors,' showing an earnings surprise due to a rebound in existing titles' sales."

Researcher Lim said, "We are raising the full-year expected revenue by 7% and operating profit by 6%," adding, "Even with conservative assumptions about new titles, the valuation (stock price relative to corporate value) burden is low. Releases such as Dark and Darker M in the first half, and Enjoy and Black Budget in the second half are scheduled."