[Click eStock] "JoyCity, Overseas Sales Expansion and New Releases Raise Earnings Expectations"

KB Securities Report

[Asia Economy Reporter Minji Lee] On the 21st, KB Securities expressed the opinion that Joycity's performance is expected to expand next year due to overseas sales growth of major games and new game releases.

Joycity is a developer of online and mobile games. Domestically, it has established a unique position in the mobile war simulation genre (SLG) with the first online sports game Freestyle series, along with titles such as "Pirates of the Caribbean: War Wave" and "Gunship Battle: Total Warfare."

Joycity's cumulative sales for the third quarter reached 117.8 billion KRW, an increase of about 52.4% compared to the same period last year. Operating profit recorded 15.1 billion KRW, up 188%, surpassing last year's performance. Sang-guk Lim, a researcher at KB Securities, explained, "The prime time is approaching through the untact benefits related to COVID-19 and the release of five new titles," adding, "Overseas sales growth and new game releases are areas to watch going forward."

Overseas sales of major games are expected to continue growing. On the 11th, Joycity announced an investment of 40 million USD from the global game publisher Tilting Point. Through Tilting Point, marketing for the mobile war simulation game "Gunship Battle: Total Warfare" in North America will be strengthened. Joycity aims to become the first domestic game company to secure a top-tier position in the US mobile game market.

Strengthening the product lineup through steady new releases is also a promising factor. Next year, Project NEO, Project M, and King of Fighters are scheduled for release, and in 2022, a mobile game utilizing the Disney IP will be launched.

Furthermore, the new webtoon business through subsidiary establishment is also noteworthy. Webtoon adaptations of existing Joycity flagship games such as Freestyle and Gunship Battle are planned, which is expected to enhance IP awareness, profitability, and potential synergy in joint marketing through game-to-webtoon transformation.

Researcher Sang-guk Lim stated, "Joycity decided on a free capital increase on the 14th, allotting two new shares per one share, raising expectations for performance growth and shareholder returns," but added, "However, concerns about delays in new game releases and overhang issues due to convertible bond issuance are still factors weighing down the stock price."

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