[Click eStock] "'Performance Normalization Phase' Netmarble, Target Price Up"

On the 3rd, NH Investment & Securities raised the target price for Netmarble from 73,000 KRW to 76,000 KRW, stating that "with the success of new games, the turnaround in performance is gaining momentum, and the financial structure is also improving." The buy rating was maintained.

On the same day, Jaemin Ahn, a researcher at NH Investment & Securities, said, "Netmarble achieved favorable results with three new games in the first half of the year," adding, "In the second half, multiple new game releases and cost control will be implemented simultaneously, making it possible for operating profit this year to turn positive at 178.5 billion KRW."

The new games preparing for release in the second half include four titles: Ilgopgaeui Daejae Kiugi (Idle RPG), King Arthur: Legend Rise (Collection Strategy RPG), RF Online Next (MMORPG), and Demis Reborn (Collection RPG).

Researcher Ahn predicted, "Netmarble's second-quarter performance will show sales of 714.5 billion KRW, an 18.4% increase compared to the same period last year, and operating profit of 61.9 billion KRW, a 1576.4% increase, turning positive," adding, "Operating profit is expected to significantly exceed the previous estimate of 28.3 billion KRW and the market consensus of 49.8 billion KRW."

He pointed out, "The games released in the second quarter, including Solo Leveling: Arise, Arthdal Chronicles: Three Powers, and Raven 2, all achieved favorable initial results, marking the start of performance normalization after the second quarter."

Furthermore, he said, "Especially Solo Leveling: Arise achieved great success globally, ranking within the top 10 in app store sales rankings in 61 countries on Google and 35 countries on Apple during its initial release," adding, "Second-quarter sales are estimated at 108 billion KRW (1.8 billion KRW per day). Although recent sales rankings have shown a slight decline, the full 90-day sales will be reflected in the third quarter, contributing to performance."