[Special Stock] Kakao Games Weakens on Forecasted Losses Until First Half... New Low

Kakao Games continued its decline for the second consecutive day, hitting a 52-week low during trading.

As of 9:28 a.m. on the 8th at the Korea Exchange, Kakao Games was trading at 13,790 KRW, down 170 KRW (1.22%) from the previous day. During the session, the price fell to 13,710 KRW, setting a new 52-week low.

The expectation that losses will continue through the first half of the year appears to have contributed to the stock price decline. On the same day, NH Investment & Securities revised its outlook for Kakao Games, stating that operating losses are inevitable until the first half of the year. The investment rating was downgraded from 'Buy' to 'Hold,' and the target price was lowered from 21,000 KRW to 15,000 KRW. Jaemin Ahn, a researcher at NH Investment & Securities, explained, "Due to poor performance of new games, operating losses are unavoidable until the first half of this year. However, new game releases expected from the second half of the year could lead to performance recovery and a stock price rebound depending on their success." NH Investment & Securities forecasts Kakao Games' first-quarter results this year to show a 31.9% decrease in sales compared to the same period last year, down to 121.5 billion KRW, and an operating loss of 5.3 billion KRW, marking a return to losses.