 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] Hyundai Motor Securities has lowered its target price for NCSoft by 11% to 210,000 KRW, citing weak Q1 earnings and a revenue gap ahead of new game releases expected in Q4. The firm, however, maintained its “Buy” rating.
“The downward revision reflects underwhelming first-quarter performance and the anticipated sales void before the launch of new titles later in the year,” the brokerage explained. “Although the gradual release of information about Aion 2 starting in Q2 may provide short-term momentum, a sustainable upward trend hinges on the success of upcoming titles.”
NCSoft’s Q1 revenue is projected to decline by 4.2% year-over-year to 381.1 billion KRW, with operating profit expected to fall 48.2% to 13.3 billion KRW.
“Mobile Lineage titles are expected to deliver steady revenue compared to the previous quarter,” Hyundai Motor Securities noted. “However, one-off labor costs, estimated at around 15 billion KRW, along with increased marketing expenses driven by the March update for Lineage M, will likely limit the scale of profit recovery.”
NCSoft plans to launch five new games in the second half of the year. The first half will focus on regional expansion of existing titles, such as Blade & Soul 2 in China and Lineage 2M in Southeast Asia. In the latter half, the company is set to release three in-house developed titles—LLL, Aion 2, and a new spin-off based on existing IPs—as well as two publishing titles: Breakers: Unlock the World and Time Takers.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
