[Click eStock] "Krafton, Sales Growth and New Releases Expected... Target Price 400,000 Won"

NH Investment & Securities raised the target price for Krafton from 340,000 KRW to 400,000 KRW on the 13th, citing positive sales growth and anticipation for new releases. The investment rating was maintained at 'Buy.'

Researcher An Jae-min explained, "PUBG, which was released six years ago, continues to show steady sales growth through consistent updates and collaborations, which is positive," adding, "The mid- to long-term outlook is also bright as various new games are scheduled for release after 2025."

He stated, "At Gamescom starting on August 21, they plan to unveil ‘Injoy (life simulation)’ and ‘Dark and Darker Mobile.’ ‘Injoy’ is a simulation genre that domestic developers have not attempted before, and since it will be released simultaneously on PC and console platforms, the market is likely to give high marks for the challenge of new genres and platforms, similar to the recent favorable stock trends of Nexon Games and Shift Up."

The second-quarter earnings were also at an earnings surprise level. Krafton's Q2 revenue reached 707 billion KRW, an 82.7% increase year-on-year, and operating profit rose 152.6% to 332.1 billion KRW. The operating profit significantly exceeded the previous estimate of 202.1 billion KRW and the market consensus of 199.2 billion KRW.

An Jae-min noted, "PC revenue recorded 191.3 billion KRW due to the effects of Erangel Classic and the NewJeans event," and "Mobile revenue grew to 499.9 billion KRW, driven by collaboration effects and solid sales in India and globally."

He added, "It is believed that some profit related to content contract renewals was also included," and said, "Personnel expenses increased by 25.6% year-on-year to 129.6 billion KRW due to hiring, and marketing costs rose 145.1% to 21.2 billion KRW."