[Click eStock] Kakao Games, 'Odin' Global Expansion... Significant Profitability Growth This Year

[Asia Economy Reporter Yoonju Hwang] Leading Investment & Securities on the 28th newly issued a 'Buy' rating and a target price of 100,000 KRW for Kakao Games, expecting profitability growth due to the global expansion of this year's hit title 'Odin: Valhalla Rising'.

Researcher Seongman Yoo of Leading Investment & Securities stated, "This year marks the beginning of the full-scale expansion of 'original IP' through new releases by Kakao Games."

Researcher Yoo analyzed, "Kakao Games' mega hit 'Odin: Valhalla Rising' recently rose to number one in domestic sales, and is preparing to leap into a global IP starting with Taiwan in the first half of this year," adding, "With the launch of 'Odin' service in Taiwan, profitability is expected to improve significantly."

Researcher Yoo said, "Kakao Games will build the ‘BORA Network’ in collaboration with about 20 game companies, entertainment companies, and blockchain technology firms to establish the full-scale ‘BORA 2.0 ecosystem’," and added, "On the BORA coin-based platform, approximately 7 to 10 blockchain games including ‘sports casual, strategy RPG, IP-based MMORPG, sports simulation, and rhythm action’ are planned to be released."

He forecasted, "BORA will expand the blockchain ecosystem through cooperation with Klaytn and as free digital asset movement within the ecosystem is realized, the expansion of the GameFi sector is expected to benefit the company."

He continued, "For 2022, we expect sales of 1.3625 trillion KRW (YoY +34.6%) and operating profit of 301.8 billion KRW (YoY +164.0%)," adding, "For next year, we anticipate sales of 1.7123 trillion KRW (YoY +25.7%) and operating profit of 356.4 billion KRW (YoY +18.1%), expecting continuous performance growth."

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