[Weekly HOT Stocks] NCSoft Approaching 1 Million Won... New Highs Driven by Momentum

Lineage 2M by NCSoft (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] NCSoft continued its upward trend thanks to various momentum factors and hit a new high on the 17th.

According to the Korea Exchange on the 21st, NCSoft's stock price soared to 888,000 KRW on the 17th, breaking its 52-week high. From the 15th to the 19th, individual investors net purchased NCSoft shares worth 20.676 billion KRW during the week.

NCSoft is showing strong performance through 'Lineage 2M,' which was released at the end of last year. According to Daishin Securities, the accounting daily sales of Lineage 2M were 4 billion KRW in Q4 last year and 3.8 billion KRW in Q1 this year. In Q2, daily sales are expected to decrease to 2.8 billion KRW due to a slight reduction in item promotions ahead of a large-scale update, but if the 'Chronicle III: Age of Abundance' update, including the siege battle, is released on the 24th, daily sales are expected to increase again to 3.2 billion KRW in Q3.

Lineage 2M is preparing for an overseas launch. Lee Mina, a researcher at Daishin Securities, explained, "If it launches in Taiwan in Q4 this year, the first quarter daily sales are expected to be 500 million KRW, and if it launches in Japan in March next year, daily sales are assumed to be 1 billion KRW," adding, "Afterward, sales are expected to stabilize downward steadily, similar to the domestic market."

NCSoft's Q2 earnings are expected to meet consensus. Operating profit margin is anticipated to improve significantly as incentives related to the Lineage 2M hit in the previous quarter are removed. Hyundai Motor Securities estimates NCSoft's Q2 consolidated sales at 650.5 billion KRW and operating profit at 275.1 billion KRW, representing increases of 58.3% and 112.6% year-over-year, respectively. Additionally, the release of the new title 'Blade & Soul 2' is scheduled for the second half of the year.

Thanks to these momentum factors, NCSoft's target stock price continues to rise. Hyundai Motor Securities suggested a target price of 990,000 KRW. Daishin Securities also raised its target price from 880,000 KRW to 1,000,000 KRW.

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