[Click eStock] "KakaoGames, Strong Earnings and Reduced Launch Uncertainty... Top Preferred Game Stock"

[Asia Economy Reporter Kwon Jae-hee] Daol Investment & Securities maintained a 'Buy' rating on Kakao Games and set a target price of 110,000 KRW on the 7th.

Daol Investment & Securities forecasted Kakao Games' Q1 performance this year to achieve sales of 260.6 billion KRW and operating profit of 33.7 billion KRW. This represents an increase of 100.2% and 115.8% respectively compared to the same period last year.

In particular, onboarding began after April, and related issues are expected to be highlighted starting with casual games on the Bora platform in the second half of the year. The Bora platform's sales outlook is projected at 38.3 billion KRW this year and 114.9 billion KRW next year.

Kakao Games' cash cow, Odin, is expected to have strong performance momentum in Q2 this year. Odin's sales in Taiwan are estimated at 600 million KRW per day in Q2. Since its official release in Taiwan on March 29, Odin has ranked 3rd in Google Play sales as of April 6.

Domestic sales of Odin showed a downward trend in Q1 due to longer content update cycles, but a sales rebound was observed after the stronghold conquest update on March 30. With the siege battle update expected in the first half of the year, the annual sales outlook is also positive.

Kim Ha-jung, a researcher at Daol Investment & Securities, said, "Regarding Uma Musu, a major momentum in the first half, marketing has already started, so the uncertainty about its release will be resolved soon," and added, "We consider Kakao Games our top pick among gaming stocks."

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