[Click eStock] "Netmarble, 'Nahonrep' Sales Decline... Target Price 85,000 → 70,000"

'Nahonrep' Sales Decline Leads to Target Price Downgrade
New Titles Utilizing Global IP Are Key to Growth
Increase in PC Game Share Reduces Payment Commission Rate

Yuanta Securities lowered the target price for Netmarble from 85,000 KRW to 70,000 KRW on the 25th, reflecting a decline in sales of 'Nahonrep' despite expecting continued revenue growth in 2025. The investment rating of 'Buy' was maintained. Netmarble's closing price on the previous trading day was 49,750 KRW.

According to Yuanta Securities, Netmarble anticipates revenue growth in 2025 through structural cost efficiency and the release of multiple new titles. The company increased productivity per employee by recording cost reductions and revenue growth on a cumulative basis through the third quarter. Labor costs for the first three quarters decreased by 3.6% year-on-year, and total expenses fell by 4.6%. In particular, to reduce the high commission burden (30%) on mobile platforms, Netmarble expanded the proportion of PC games, lowering the commission rate from 39.6% to 35.5%, a 4.1 percentage point decrease.

Additionally, Netmarble plans to release a total of nine self-developed new titles and one publishing game in 2025. Major new releases include 'Game of Thrones: Kingsroad' (an open-world action RPG) and 'Mongil: Star Dive' (an action RPG), both utilizing global intellectual property (IP), scheduled for release in the first and second halves of 2025, respectively. Furthermore, the MMORPG genre title 'The RED: Blood Heir' and the global hit 'Nahonrep' will have console/PC (STEAM) versions released in the second half of 2025.

Changyoung Lee, a researcher at Yuanta Securities, stated, "Although revenue growth is expected to continue in 2025 based on cost efficiency and new releases, we set the target price at 70,000 KRW reflecting the decline in sales of the existing hit 'Nahonrep.' Through strengthened structural competitiveness from cost efficiency and the release of new titles across various genres, Netmarble aims to expand its performance in the global market."