[Click eStock] Netmarble, Overflowing Momentum... Target Price Raised to 165,000 Won

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities announced on the 30th that it maintains a buy rating on Netmarble due to multiple momentum factors and raises the target price to 165,000 KRW.

Netmarble is expected to see a strong improvement in performance starting in the second half of the year due to the success of The Second Country. It maintains a stable top-tier sales ranking in South Korea, Japan, Taiwan, and other markets. Furthermore, with the addition of guild-based Kingdom content related PvP and throne battles, the game's immersion is expected to increase, raising the possibility of higher sales. Since it was developed by Netmarble Neo, the developer of Lineage 2 Revolution, the game's lifecycle is expected to be long.

With the release of Marvel Future Revolution and Seven Knights Revolution in the second half, the momentum from new titles is expected to strengthen further. Marvel Future Revolution held a showcase on the 29th and started pre-registration, so a global release within 2021 is anticipated. This game is being developed and operated by Netmarble Monster, which developed Marvel Future Fight and has a high understanding of the Marvel IP, raising expectations for its success. Additionally, Seven Knights Revolution is also expected to be released simultaneously in South Korea and Japan in the second half. Since Seven Knights is an original IP, it has accumulated sufficient content, and if successful, it is expected to significantly contribute to profitability improvement.

Meanwhile, since Black Desert Mobile has obtained a publishing license in China, expectations for the entry of Lineage 2 Revolution and Blade & Soul Revolution into the Chinese market are rising. Both games have signed publishing contracts with Tencent, the largest game company in China, so if released in 2022, royalty revenues are expected to be reflected, contributing significantly to profits.

Lee Seung-hoon, a researcher at IBK Investment & Securities, explained, "The target price was calculated by applying Netmarble's median price-to-earnings ratio (PER) of 28.6 times over the past three years to the expected earnings per share (EPS) in 2022, when sales from new games released in the second half are expected to stabilize and Chinese sales are likely to occur," adding, "As the possibility of Chinese publishing licenses for domestic game companies increases, this is considered a re-rating factor for the entire gaming industry."

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