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Photo = Netmarble |
[Alpha Biz= Reporter Kim Minyoung] DaeShin Securities Maintains 'Buy' Rating and Target Price of 63,000 Won for Netmarble Amid Strong Q2 Performance and High Expectations for H2
On the 18th, DaeShin Securities maintained a 'Buy' rating for Netmarble, with a target price of 63,000 won, citing anticipated strong Q2 performance and high expectations for new releases in the second half of the year. The previous trading day's closing price was 60,600 won.
According to DaeShin Securities, Netmarble's Q2 sales are estimated to reach 780.8 billion won, a 29.3% increase year-on-year, with an operating profit projected to turn positive at 85.5 billion won. Sales are expected to meet consensus, while operating profit is forecasted to exceed it.
Three new titles were launched in Q2, with "Solo Leveling" achieving significant initial success. The daily average sales for "Solo Leveling" are estimated to be around 3.6 billion won. The other two new titles, "Arthdal Chronicles" and "Raven 2," are projected to generate daily average sales of approximately 100 million won and 500 million won, respectively.
DaeShin Securities noted, "All three new titles have a higher proportion of PC sales compared to the company's existing lineup. PC games generally have lower commission rates than mobile games, resulting in higher profitability." They added, "Particularly for 'Solo Leveling,' the IP commission rate is low, contributing significantly to Q2 sales and profits."
Following a strong Q2 performance, four new titles are set to launch in the second half of the year. Among them, the third-quarter release "The Seven Deadly Sins: Grand Cross" is expected to perform well, given the global popularity of the IP and the high sales rankings of recent idle RPG games.
The stock price is anticipated to trend positively ahead of new releases, driven by strong Q2 results. However, there may be a price adjustment following the release of new titles and diminished expectations for subsequent releases.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
