Gamevil Expands Revenue Contribution from 'Pro Baseball'... Target Price Raised

[Asia Economy Reporter Park Jihwan] Hi Investment & Securities maintained a buy rating on Gamevil on the 6th, stating that the daily sales of 'Pro Yag 2020 Superstars' (Gempya 2020) doubled from around 50 million KRW since its global launch, and raised the target price from the previous 26,000 KRW to 51,000 KRW.

According to Hi Investment & Securities, Gempya 2020 was launched globally on the 25th of last month. On the first day of release, it ranked number one in the sports game popularity charts in major markets including Japan, North America, and Taiwan. The daily sales, which were around 50 million KRW when only serviced domestically, rose to approximately 100 million KRW after the global launch. Gempya 2020 combines the sports genre with role-playing game (RPG) elements, enhancing the fun factor, and it is analyzed that the collection and nurturing elements will drive long-term popularity.

Kim Minjung, a researcher at Hi Investment & Securities, said, "The daily sales of all Gamevil games in the second quarter are around 300 million KRW, and the increase of more than 50 million KRW in daily sales from the new release Gempya 2020 will significantly contribute to revenue growth," adding, "Marketing costs for Gempya 2020 were invested upfront, and operating profit in the third quarter is expected to decrease compared to the previous quarter, but profits are projected to improve significantly from the fourth quarter."

Researcher Kim Minjung emphasized, "Operating profit in the fourth quarter is estimated to increase by 43.2% compared to the third quarter, reaching 12.4 billion KRW," and "due to the success of Gempya 2020, a stable profit trend has been established solely from business revenue, and the subsidiary Com2uS is expected to greatly improve its performance by releasing a new title based on the Summoners War IP next year."

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