[Click eStock] "Neowiz, High Investment Appeal from a Mid-to-Long-Term Perspective"

Shinhan Investment Corp. analyzed on the 26th that Neowiz holds high investment attractiveness from a mid- to long-term perspective.

Kang Seok-oh, a researcher at Shinhan Investment Corp., stated in a report on the same day, “They have demonstrated IP development capabilities and the ability to respond to PC/console/mobile platforms, and have recruited numerous talents,” adding, “Although it will take time for their results to appear, the quality and box office potential of their works have certainly increased, so there is considerable investment appeal in the mid- to long-term outlook.”

He forecasted that Neowiz’s sales and operating profit for the second quarter of this year will record 86.1 billion KRW and 4.5 billion KRW respectively, slightly below consensus expectations.

He analyzed, “As the effect of the release of fades, there was no new title capable of making a significant contribution to performance,” and “After the success of a new Souls-like genre title, which had not been attempted domestically, it has become easier to hire well-known domestic directors and development personnel, but it will take considerable time before their AAA-level results appear.”

He also explained, “The DLC of is expected to be released by the end of the year, and stable cash flow generated from various works such as casual, sports, and subculture genres is expected to fill the gap period,” adding, “Web board sales have also maintained gradual growth, continuing to serve as a cash cow, and through networks with overseas developers, it is possible to expect not only in-house developed works but also well-made external titles.”