"Netmarble's Publishing Capabilities Require Re-Evaluation"[Click e-Stock]

Publishing Capabilities Reassessed Amid Consecutive Hits
Extending Success Duration Remains Key Challenge

There is growing analysis suggesting that Netmarble's publishing capabilities should be re-evaluated, as the games distributed by the company have achieved consecutive successes. Although the duration of each game's popularity has not been particularly long, the peak performance of these titles has improved compared to the past, and the company has consistently strengthened its management capabilities.

On September 8, DS Investment & Securities maintained its target price for Netmarble at 86,000 won and reiterated its "Buy" rating, citing these factors. The previous trading day's closing price was 60,800 won.

Vampire, which was released on August 26, is estimated to have achieved strong initial results, with daily sales reaching approximately 2 billion won. The game succeeded by closely following the established "Lineage-like" formula and demonstrating Netmarble's publishing capabilities through influencer promotions and other channels. Of the four games Netmarble launched this year, three-including "RF Online Next" and "Seven Knights Rebirth"-have achieved commercial success. This has led to calls for a re-evaluation of Netmarble's publishing abilities, beyond simply considering the quality of individual games.

Choi Seungho, a researcher at DS Investment & Securities, commented, "Netmarble has shown significant progress in most areas, including marketing strategy and spending, brand awareness, game quality, and launch management, compared to previous years."

Nevertheless, one reason for Netmarble's continued undervaluation is the short lifespan of its new games' popularity. However, the company has managed to achieve higher peak sales than in the past and is offsetting declines in older titles by consistently releasing new ones. Even if sales of Vampire slow down, Netmarble plans to launch a new MMORPG, "SOL," in the first quarter of next year. By regularly introducing new titles in major cash-generating genres such as idle games and MMORPGs, Netmarble is expected to maintain its current level of sales.

Some believe that a true re-evaluation will require a mega-hit outside of the "cash cow" genres. Netmarble, which has the largest development workforce among domestic gaming companies, also boasts a wide range of genres. It has recently shown interest in developing PC and console game projects as well.

Researcher Choi explained, "The success of this year's most anticipated titles, 'Monster Taming: Star Dive' and 'The Seven Deadly Sins: Origin,' should be closely watched, as they have the potential to simultaneously impact both earnings per share (EPS) and valuation multiples."