Despite US-Iran Conflict, 'Game Leader Stock' NCSoft Hits Record High

Stock Price Surpasses 600,000 Won... Gaming Stocks Fall but Lineage2M Soars Alone
Expected to Show Outstanding Growth Compared to Overseas Game Companies
Record-Breaking Performance Anticipated This Year with Lineage2M Establishment

[Asia Economy Reporter Minwoo Lee] NCSoft's stock price has surpassed 600,000 KRW. Despite the turbulence in domestic and international stock markets caused by the military conflict between the United States and Iran, the stock has continued its "high-altitude march." With the successful establishment of "Lineage 2M" and major new releases such as "Aion 2" and "Blade & Soul 2" on the horizon, it is expected that NCSoft will maintain its dominant position as the leading game stock for the time being.

According to the Korea Exchange on the 9th, NCSoft recorded an all-time high closing price of 604,000 KRW the previous day. This represents a surge of more than 42% compared to the annual low of 424,500 KRW on December 3 last year. While most stocks, except for defense industry-related shares, declined due to the military conflict between the US and Iran, NCSoft continued to rise steadily. This contrasts sharply with other major game stocks such as Netmarble and Pearl Abyss, which fell one after another. In fact, Netmarble, considered part of the game industry's "3N" along with Nexon and NCSoft, hit a three-month low of 86,200 KRW that day. This is why analysts say NCSoft is solidifying its unique position as the leading game stock.

Compared to major overseas game companies, NCSoft's growth is also remarkable. According to Bloomberg consensus, NCSoft's sales this year are expected to be 2.0461 trillion KRW, and operating profit is forecasted at 1.691 trillion KRW. These figures represent increases of 46% and 91%, respectively, compared to last year. Among major overseas game companies such as Activision Blizzard (USA), Nintendo (Japan), and Tencent (China), none are expected to achieve higher revenue growth or operating profit increase rates than NCSoft.

Jaemin Ahn, a researcher at NH Investment & Securities, said, "While the price-to-earnings ratio (PER) of global leading game companies is 23 times this year, NCSoft's PER is only 17 times despite positive earnings forecasts and recent stock price increases. As it has now entered a phase where undervaluation is being actively resolved, it is expected to grow further."

The biggest factor behind the stock price rise is the success of the latest title, Lineage 2M. After its release on November 27 last year, it reclaimed the number one spot in Google Play revenue, which Lineage M had held for two years, within just three days. It is estimated to generate an average daily revenue of 4.3 billion KRW, with projections that Lineage 2M's revenue will approach 1 trillion KRW this year. Particularly, the minimal cannibalization effect on Lineage M, which was the biggest concern, is regarded as a significant positive factor.

Meanwhile, NCSoft is expected to further boost its performance by sequentially releasing Lineage 2M in Japan, Taiwan, the United States, and Europe this year. Highly anticipated titles such as Aion 2 and Blade & Soul 2 are also planned to be released simultaneously on PC and mobile platforms, raising expectations for record-breaking performance this year.

Researcher Changkwon Kim from Mirae Asset Daewoo said, "The recent continued foreign buying of NCSoft shares is because it has overwhelming investment appeal among global game companies. With Lineage M remaining strong and the momentum of Lineage 2M reflected, especially in the first quarter of this year, it is expected to achieve the highest operating profit ever."

This content was produced with the assistance of AI translation services.