[Click eStock] "Shift Up Expects Significant Performance Improvement This Year with Entry into China"

Yuanta Securities analyzed on the 26th that Shift Up is expected to see a significant performance improvement this year due to its expansion into China. They newly issued a 'Buy' investment rating and a target price of 90,000 KRW.

Lee Chang-young, a researcher at Yuanta Securities, stated, "Shift Up's 'Nikke,' scheduled to be released through Tencent in April or May this year, recorded 3,241,389 pre-registrations as of the previous day, raising local expectations. Considering Tencent's pre-registration target of 8 million, it indicates confidence in Nikke's content and plans for aggressive marketing in the future."

Yuanta Securities expects Nikke to achieve an average daily sales revenue of 1.17 billion KRW based on the Chinese local market this year, with Shift Up's net sales estimated at 290 million KRW. He emphasized, "There are pre-screening issues for provocative subculture game characters in China, a socialist country. However, in Nikke's case, the characters are not significantly different from existing global characters, reflecting the recent easing of regulations on K-content, such as the lifting of the ban on Korean content."

He added, "Shift Up demonstrated an operating profit of 460 million KRW per person last year, possessing the most efficient game development structure among domestic game companies. Given the high profit leverage when a game succeeds and the ability to maintain a stable financial structure even if a game fails, it is judged that Shift Up can be assigned a higher valuation compared to other companies."