Neowiz, Webboard Regulation Eased and Multiple New Releases...Expecting Performance Growth

[Asia Economy Reporter Park Jihwan] Shinhan Financial Investment maintained a 'Buy' rating and a target price of 42,000 KRW on the 29th for Neowiz, citing the regulatory easing effect on the cash cow web board segment and growth in overseas sales driven by multiple new releases.

Researcher Lee Moonjong of Shinhan Financial Investment analyzed, "Web board sales in the third quarter are expected to rise 3.7% quarter-on-quarter to 34.1 billion KRW," adding, "Since the regulatory easing of web board at the end of April, monthly sales from May to August have remained at a high level."

It is forecasted that sales growth will continue quarter-on-quarter throughout the year, as typically sales level up during the Chuseok peak season and the fourth quarter benefits from the year-end peak season effect.

The acquired intellectual property (IP) AVA (PC FPS) was launched in the Taiwan region in July, followed by the release of Druwadungeon in Japan in August. From September to October, releases are expected for Lost Ark (PC MMORPG, Japan publishing), Bless Unleashed (PS4, global excluding Asia), and Goddess: Primal Chaos (mobile, Bless IP, China).

Operating profit for next year is projected to grow 28% year-on-year to 86.7 billion KRW. Researcher Lee Moonjong anticipated, "With the warmth of the web board regulatory easing reflected, web board sales will grow 8.6%, and alongside contributions from new titles, overseas sales are expected to increase by 19.5%."

He added, "The PC version of Bless will be released through self-publishing, and Krafton's anticipated title Elyon is scheduled for Japan publishing in the second half of next year," "Considering the stock price has fallen due to profit-taking despite strong performance, it is judged to be a good buying opportunity."

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