[Click eStock] Netmarble Lowers Earnings Estimates... Target Price Also Downgraded

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment & Securities maintained a 'Buy' rating on Netmarble on the 10th, reflecting a downward revision in earnings estimates, but lowered the target price from 175,000 KRW to 140,000 KRW.

Ando-young Ahn, a researcher at Korea Investment & Securities, stated, "We revised down earnings estimates and reflected the decline in equity value due to the recent sector stock price drop."

Researcher Ahn explained, "Domestic sales in the fourth quarter of last year decreased by 19.4% compared to the same period last year, operating profit declined due to increased amortization expenses from the acquisition of SpinX Games, and marketing costs rose due to new game releases."

He added, "It is positive that multiple new titles are being prepared this year," and emphasized, "Especially for P2E games, there is a high possibility of exceeding our estimates, so a gradual approach from a buying perspective is advisable."

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