[Click eStock] "Krafton Q3 Earnings Surprise... Target Price Up"

"Stable Profit Generation of PUBG, Efforts in Cost Control
... Five New Titles Scheduled for Release Next Year"

On the 8th, Samsung Securities raised the target price for Krafton to 220,000 KRW, stating that the company recorded an earnings surprise in the third quarter of this year. The buy rating was also maintained.

On the same day, Samsung Securities analysts Odonghwan Oh and Seungmin Yoo stated, "Reflecting the rapid sales expansion in the India region and efforts to control costs, we have raised Krafton's operating profit estimates for this year and next year by 8.1% and 1.5%, respectively. The target price was also raised by 15.8%, from the previous 190,000 KRW to 220,000 KRW."

Krafton's third-quarter revenue was 450.3 billion KRW, up 3.8% year-on-year and 16.4% quarter-on-quarter. Operating profit was 189.3 billion KRW, an increase of 35% year-on-year and 44% quarter-on-quarter, exceeding market expectations by 30%. Analyst Oh explained, "Efforts to improve cost efficiency reduced overall operating expenses such as advertising and commission fees."

Analyst Oh said, "'PUBG' (PlayerUnknown's Battlegrounds) is extending its lifespan with continuous content updates, external brand collaborations, and esports events on both PC and mobile platforms. Although China's Peacekeeper Elite is still experiencing declining sales, India's 'Battlegrounds Mobile India' (BGMI) is rapidly growing and offsetting this decline," adding, "In the fourth quarter, sales growth is expected to continue with the release of new large maps, growth-type weapons, and localized content for India."

The new game lineup is also being strengthened. Analyst Oh explained, "Two new titles, Dark and Darker Mobile and Project inZOI, which will be unveiled at this year's G-Star, are planned for release in the first and second halves of next year, respectively. The next shooting game, Black Budget, is also under development with a target release in the second half of next year. A total of five new titles are planned to be released next year."

He added, "Although efforts to expand the new game lineup through equity investments in developers and strengthening in-house development studios are expected to bear significant fruit starting in 2025, the reinforcement of the new game lineup next year is expected to alleviate concerns about one-game risk."

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