[Click eStock] "Neowiz, 'P-ui Geojit' Decline... Target Price Down 30%"

'P-ui Geojit' Shows Clear Sales Decline One Year After Release
DLC Scheduled but Low Impact on Performance
2025 New Release Schedule Uncertain, Conservative Approach Needed

Daishin Securities on the 27th downgraded its target price for Neowiz by 30%, from 30,000 KRW to 21,000 KRW, citing a decline in the initial hype effect as it has been one year since the release of "P-ui Geojit" (The Lie of P). The 12-month forward EPS (earnings per share) was estimated at 1,126 KRW, 30% lower than before, and a price-to-earnings ratio (PER) of 18.5 times, discounted by 10% compared to global peers, was applied. Neowiz's closing price on the previous trading day was 20,250 KRW.

Lee Ji-eun, a researcher at Daishin Securities, stated, "Considering the lack of highly anticipated new releases in 2025 and the decline in sales of 'P-ui Geojit,' there is limited upside potential compared to the current stock price." Released in September 2023, "P-ui Geojit" has sold approximately 2 million copies to date, proving its potential as a global IP. In particular, strategic approaches such as inclusion in Game Pass have contributed to its success. However, due to the nature of package games, major sales are concentrated in the early release period, and sales are currently declining.

The first DLC for "P-ui Geojit" is expected to be released in the first quarter of 2025, but sales are projected to reach only about 800,000 copies, which is 20-30% of the original package sales. Additionally, due to the low price structure of the DLC, its contribution to earnings is expected to be limited. Currently, the developer Round8 is developing more than five new titles, but the release schedule for major new titles has not yet been clarified. The company plans to expand its lineup with genres such as survival action adventure and life simulation, but specific release dates are undecided.

Neowiz's operating profit in 2025 is expected to decrease by 8% compared to the previous year. This is interpreted as a result of the diminishing sales effect of "P-ui Geojit" and the absence of new titles that could generate anticipation. The researcher said, "Given the current market situation, a conservative approach is necessary until the release schedule of Neowiz's new titles becomes concrete."