[Click eStock] "NCSoft, Lineage2M Sales Exceed Expectations... Target Price Raised"

[Asia Economy Reporter Oh Ju-yeon] Daishin Securities stated that NCSoft's Lineage 2M sales in the first quarter of this year exceeded performance expectations, and accordingly raised its 2020 sales and operating profit estimates by 11% and 5%, respectively, compared to previous estimates. The firm also maintained a 'Buy' investment rating and raised the target price by 16% to 880,000 KRW.

According to the Financial Supervisory Service's electronic disclosure system on the 13th, NCSoft reported a consolidated operating profit of 241.4 billion KRW in the first quarter, a 203.62% increase compared to the same period last year. Sales reached 731.1 billion KRW, up 103.79%, and net profit was 195.4 billion KRW, a 161.65% increase.

This is seen as a reflection of the sustained revenue from Lineage 2M. According to Daishin Securities, Lineage 2M's daily sales were 3.79 billion KRW, showing only a slight decrease compared to the accounting daily sales of 4.11 billion KRW in the fourth quarter. This indicates a significantly higher stability compared to the initial sales of Lineage M.

Lineage M's sales were also evaluated as encouraging. Typically, the fourth quarter is the peak season for Lineage M due to large-scale item promotions, while the first quarter is affected by the off-season. However, the first quarter sales of Lineage M were maintained at a level almost similar to the fourth quarter. Accordingly, it is expected that quarterly sales around 210 billion KRW can be sustained throughout 2020.

Researcher Lee Min-ah stated, "Due to the impact of the novel coronavirus disease (COVID-19), mobile game usage time worldwide has increased," and added, "As the situation is prolonged, the gaming industry is expected to benefit for the time being."

She also noted, "For domestic MMORPG developers, the user base is limited to a niche group, so direct benefits from COVID-19 are limited, but a simultaneous rise is possible due to the increase in global gaming stocks' prices," and expressed optimism that "the stock price strength is expected to continue for the time being."

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