[Click e-Stock] "Netmarble, a Perfect First Half... High Expectations for New Titles in the Second Half"

Target Price Raised from 52,000 Won to 71,000 Won

On July 8, Hana Securities raised its target price for Netmarble from 52,000 won to 71,000 won, stating that the successful performance of titles released in the first half of the year allows the company to look forward to the results of new releases in the second half with greater confidence. The investment rating was maintained at 'Buy'.

Netmarble's consolidated operating revenue for the second quarter is projected to reach 729.6 billion won (down 6.7% year-on-year), and operating profit is expected to be 85.6 billion won (down 23%), both surpassing market expectations. This is largely due to the stronger-than-expected performance of "Seven Knights Rebirth," launched in May, which has already generated cumulative sales exceeding 80 billion won. "RF Online Next," released in the first quarter, is also maintaining stable revenue.

Lee Junho, a researcher at Hana Securities, stated, "Since both games currently rank high on the two major app stores, we expect them to provide downside support for this year's earnings." He added, "However, 'Game of Thrones: Kingsroad,' which was released simultaneously for PC and mobile in North America and Europe, failed to gain initial traction, so a rebound is unlikely."

Netmarble's operating revenue for this year is estimated at 2.8716 trillion won (up 7.8% year-on-year), with operating profit projected at 345.4 billion won (up 60.2%). Despite six new titles scheduled for release in the second half, the strong results from first-half releases alone have led to upward revisions in annual estimates. Highly anticipated titles set for launch in the second half include the MMORPG "Vampire," which began pre-registration last month, as well as "Solo Leveling: ARISE Steam," "MonGil: STAR DIVE," and "The Seven Deadly Sins: Origin."