[Click eStock] "'Cookie Run Rebound & Cost Efficiency' Devsisters, Buy Recommendation"

On the 31st, IBK Investment & Securities initiated coverage on Devsisters with a "Buy" rating and a target price of 65,000 KRW, citing "anticipated new releases, management reform, and unique development capabilities as key investment points." The previous day's closing price was 53,400 KRW.

On the same day, Lee Seung-hoon, a researcher at IBK Investment & Securities, stated, "Following the global closed beta test (CBT), the highly anticipated 'Cookie Run: Tower of Adventures' is scheduled for release on the 26th of next month."

He added, "Cookie Run: Tower of Adventures has surpassed 1 million pre-registrations and is a casual game featuring single-player and cooperative content, targeting a broad user base, which raises expectations for its success," and "In the second half of the year, the release of the competitive shooting game 'Cookie Run: Oven Smash' is expected, continuing the upward momentum through new game launches."

In the first quarter of this year, sales increased by 18.3% year-on-year, and operating expenses decreased by 7.2%, resulting in a return to profitability. After restructuring the top management, cost efficiency improvements appeared rapidly. The researcher explained, "Since the end of last year, under an emergency management system, cost efficiency measures such as the swift termination of the SideBullet service and minimizing development personnel for Brick City have been underway," adding, "This reflects the effect of focusing the business on strengthening the intellectual property (IP) of Cookie Run, which has achieved global cumulative sales of 1 trillion KRW."

He said, "Excluding major domestic game companies, only a few companies globally plan, develop, and operate multiple games (Cookie Run, Cookie Run: Oven Break, Cookie Run: Kingdom, etc.). Because their craftsmanship-level development capabilities are recognized, expectations for new games are high," and "With ongoing management reform, past mistakes of rapidly deteriorating financial performance due to inefficient business structures after game successes will not be repeated."