[Click eStock] "Pearl Abyss, Rising Expectations for 'Red Desert' Release"

On the 13th, KB Securities maintained a target price of 50,000 KRW and a 'Buy' rating for Pearl Abyss, expecting fundamental improvements due to pipeline expansion ahead of the release of the new title 'Red Desert.'

Researcher Lee Seon-hwa stated, "Pearl Abyss's consolidated sales for the second quarter are expected to be 80.8 billion KRW," adding, "Operating loss is projected at 8.8 billion KRW, in line with the market expectation of an 8.2 billion KRW operating loss."

He forecasted, "Following the previous quarter, the contract payment for 'Black Desert Mobile' in China is recognized, estimating a 39.1% increase in mobile sales. However, considering that the second quarter each year is the period when the company pays bonuses in the form of treasury stocks, resulting in increased labor costs compared to the previous quarter, operating profit is expected to record a loss."

He also expressed optimism, saying, "'Red Desert' is Pearl Abyss's next title released after more than ten years since the launch of 'Black Desert' in 2015," and "Expectations are gradually rising in terms of quality and commercial success."

With the issuance of the Chinese license for 'Black Desert PC,' a release within the year is also anticipated. At the end of May, news reported that the Ministry of Culture, Sports and Tourism and the Ministry of Strategy and Finance would continue additional consultations with Chinese authorities from as early as July to expand the issuance of Chinese licenses.

Researcher Lee added, "Pearl Abyss received the foreign investment license for Black Desert PC in China on the 5th and is preparing for release with the publisher Tencent," and "It is expected that Black Desert PC will be serviceable in China within the year, and since MMORPG genre games maintain a top 10 ranking on the PC platform in China, positive results are anticipated."