[Feature Stock] Netmarble Surges 10% on Surprise Earnings and New Release Expectations

Netmarble is showing strong performance in early trading. This is interpreted as a result of improved investor sentiment following its unexpected earnings in the first quarter.

As of 9:07 a.m. on May 9, Netmarble was trading at 49,550 won, up 4,600 won (10.23%) from the previous day.

In the first quarter, Netmarble recorded sales of 623.9 billion won (up 6.6% year-on-year) and operating profit of 49.7 billion won (up 1,243%), significantly exceeding market expectations. Net profit for the period also turned positive, reaching 80.2 billion won.

Lee Seunghoon, a researcher at IBK Investment & Securities, stated, "Since the turnaround in the fourth quarter of 2023, cost efficiency and the continued success of new game releases have led to a stable financial structure," and set a target price of 65,000 won.

Expectations for new releases also remain high. Lim Heeseok, a researcher at Mirae Asset Securities, explained, "The strong topline was driven by a rebound in sales of existing titles and the impact of new game launches. Solo Leveling generated sales of 50 billion won, exceeding expectations by 38%, and RF Online recorded sales of about 19 billion won within just 10 days of launch." He added, "The company is preparing to launch eight new titles across diverse genres. In the second quarter, it plans to release Seven Knights Rebirth, Game of Thrones, and King of Fighters AFK. In the second half of the year, five new titles are scheduled for release: Vampire, Mongil: Star Dive, Seven Deadly Sins Origin, Project SOL, and Solo Leveling."