[Click eStock] "Neowiz, Stock Price Too Low Ahead of P's False Launch"

Daishin Securities analyzed on the 21st that Neowiz's stock price is undervalued ahead of the release of the new blockbuster game 'P-ui Geojit' (P's Lie). The investment opinion 'Buy' and the target price of 53,000 KRW were maintained.

Neowiz's new console game P-ui Geojit is scheduled to be released on September 19. Lee Ji-eun, a researcher at Daishin Securities, said, "P-ui Geojit is a new IP, which is a factor that discounts the expected sales volume," but added, "Considering that despite being a new IP, it won three awards at Gamescom 2022 and received favorable reviews during the demo play, we believe the expectations are high."

Along with this, it was analyzed that Neowiz's stock price is undervalued. He emphasized, "Reflecting the expected sales volume of 2 million copies for P-ui Geojit, the operating profit for 2023 is expected to increase by 280% compared to last year," and "The current valuation is considered significantly undervalued even compared to the company's past levels."

However, poor performance is expected in the second quarter. Daishin Securities forecasted that Neowiz's sales in the second quarter will be 68.2 billion KRW, a 3% decrease compared to the same period last year. Additionally, an operating loss of 800 million KRW is expected, turning to a deficit compared to the previous year. He analyzed, "Sales decline is expected due to the off-season effect of web board games and the natural decrease in sales of Cat and Soup," and "Although the new release of Brown Dust 2 occurred, due to poor performance and insufficient reflection days, its contribution to earnings is expected to be minimal."

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