[Click e-Stock] "NCSoft, High Potential for Future Earnings Improvement... Target Price Up"

Target Price Raised from 220,000 Won to 260,000 Won

Yuanta Securities raised the target price for NCSoft from 220,000 KRW to 260,000 KRW on the 27th, citing a high possibility of future earnings improvement. The investment rating was maintained as 'Buy.'

Researcher Changyoung Lee of Yuanta Securities stated, "We present a new target price of 260,000 KRW reflecting 2025 earnings," adding, "The increased speed and volume of new game releases compared to the past, along with various intellectual properties (IP), diverse genres, and multiple platform game launches, indicate a high potential for future earnings improvement."

There is confirmed strong overseas interest in 'Throne and Liberty (TL),' which is set for a global release. TL's global publisher, Amazon Games, announced the global launch date as October 1. Lee explained, "Amazon Games addressed the shortcomings pointed out during last year's domestic release, such as combat mechanics and early growth issues, and revealed that during the global open beta test (OBT) held from September 18 to 23, over 84,000 players participated in guilds, and the number of completed cooperative dungeons reached 24,000. Additionally, on overseas Twitch, 16,000 streamers broadcasted TL gameplay, accumulating 3.8 million viewers. Unlike the domestic market where it was overlooked, TL has garnered high interest and expectations overseas," adding, "The TL global launch on October 1 plans to overcome its weaknesses and aims for a revival abroad."

New game releases are expected to continue, along with ongoing workforce efficiency improvements. The new collectible role-playing game (RPG) 'Hoyeon' will be released on the 28th in Korea, Taiwan, and Japan, and in the fourth quarter, the launch of 'Blade & Soul 2' in China and 'Lineage 2M' in Southeast Asia is scheduled. Lee forecasted, "In the first half of 2025, 'Project G (SLG)' and in the second half, 'Aion 2' and 'LLL (shooting game)' are planned for release, totaling seven new titles in 2025. The challenge of new IPs and genres will proceed at a faster pace than before," adding, "Furthermore, due to workforce restructuring, labor costs in Q2 decreased by 10% year-on-year, and workforce efficiency is expected to continue." He also added, "An increase in valuation is anticipated through improvements in return on equity (ROE) via real estate sales and securitization, treasury stock cancellation, and strengthened shareholder returns."