[Click eStock] "Netmarble Continues 2Q Loss... Target Price Down"

NH Investment & Securities lowered the target price for Netmarble from 81,000 KRW to 60,000 KRW on the 13th. The investment rating was maintained at 'Buy.'

Netmarble's sales for the second quarter of this year are expected to be 614.1 billion KRW, down 7% compared to the same period last year, with an operating loss of 31.1 billion KRW. This is due to a decline in sales caused by the absence of new games and increased marketing expenses as pre-marketing for games to be released after July has begun.

Netmarble plans to release 'Sinui Tap: Saeroun Segye' (Tower of God: New World) on the 26th. Following that, 'Grand Cross: Age of Titan' is scheduled for next month, and 'Seven Knights Raising' is set for release in September. Additionally, 'King Arthur: Legend Rise,' 'Asdal Chronicles,' and 'Nahonjaman Level Up: ARISE' are also planned for release within the year.

'Sinseokgisidae' (Neolithic Age), released in China at the end of last month, is maintaining a top 10 position on the Chinese Apple App Store. Games revealed at Tencent's game conference 'SPARK 2023,' including 'Second Country,' 'The Seven Deadly Sins,' 'A3: Still Alive,' and 'Shop Titan,' are also scheduled for release soon.

Jaemin Ahn, a researcher at NH Investment & Securities, said, "Games expected to be released in the second quarter were postponed to after July, so the company has not yet escaped operating losses. However, there are quite a few titles scheduled for release after July, and if some of these games perform well, it is expected that the company will enter a phase of rapid earnings normalization."

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