Neowiz Benefits from Webboard Market Growth...Second Preferred Stock in Game Industry

[Asia Economy Reporter Park Jihwan] NH Investment & Securities on the 1st provided a buy investment rating and a target price of 23,000 KRW for Neowiz, expecting significant earnings growth this year due to the growth of the web board game market and regulatory easing.

Researcher Ahn Jaemin of NH Investment & Securities stated, "This year, the web board game market is expected to grow by more than 20%," adding, "Since the introduction of adult verification on Apple iOS last August, the release of high-stakes games on the Apple App Store has become possible, and there is also news of additional industry growth due to the upcoming easing of web board regulations to be finalized this month."

He particularly noted, "Due to the spread of COVID-19, outdoor activities have significantly decreased, and while game companies are generally in a favorable state, web board games have an older user base and are expected to be more affected by the reduction in outdoor activities."

Additionally, the implementation of web board game regulatory easing this month is positive news. Researcher Ahn said, "The Ministry of Culture, Sports and Tourism decided to abolish the regulation on the daily loss limit of 100,000 KRW as part of the partial amendment to the Enforcement Decree of the Game Industry Promotion Act in November 2019," adding, "Only the review by the Legislation Office and the Cabinet meeting approval remain."

Researcher Ahn emphasized, "This year, web board game sales will exceed 130 billion KRW, showing a growth rate of over 24%," and "Neowiz is recommended as the second-preferred stock within the game industry as the number one operator in the mobile web board game market."

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