[Click eStock] "Pearl Abyss, New Release is Key"

Korea Investment & Securities Issues 'Buy' Rating and 230,000 KRW Target Price... Closing Price on 28th at 185,500 KRW

[Asia Economy Reporter Geum Bo-ryeong] Pearl Abyss's fourth-quarter results last year fell short of consensus due to a decline in mobile game sales. Going forward, the key factor is expected to be the release of new titles.

According to Korea Investment & Securities on the 29th, Pearl Abyss's estimated fourth-quarter revenue last year was 124.9 billion KRW, and operating profit was 28.7 billion KRW, representing increases of 25.4% and 48% respectively compared to the previous year.

Jung Ho-yoon, a researcher at Korea Investment & Securities, explained, "The initial sales scale of Black Desert Global was about 400 million KRW per day, falling short of market expectations. The mobile game sales in Korea, Japan, and Taiwan for Black Desert M were affected by the cannibalization effect and natural sales decline due to the release of new titles such as Lineage 2M, resulting in an overall 3.6% decrease in mobile game sales to 59.5 billion KRW compared to the previous year, which is the main reason for the sluggish performance."

The factor that will determine the future stock price direction is analyzed to be new releases. The important new titles Pearl Abyss is preparing include Red Desert, Dokkaebi, Plan 8, and EVE Echoes. Researcher Jung said, "There are few concerns about the quality of Pearl Abyss's new titles based on solid development capabilities, so if the release schedule becomes visible, the stock price is highly likely to turn upward again. Among the approximate release schedules of the four titles, the most likely is EVE Echoes, scheduled for release in the second half of the year, while the other three titles do not yet have specific schedules."

Korea Investment & Securities has given Pearl Abyss a 'Buy' investment rating. The target price has been adjusted down to 230,000 KRW from the previous level. The closing price on the 28th was 185,500 KRW.

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