[Click eStock] "Neowiz, Target Price Lowered to 37,000 Won"

Kiwoom Securities announced on the 31st that it has lowered the target price for Neowiz from 57,000 KRW to 37,000 KRW. The investment rating was maintained as Buy.

Jingu Kim, a researcher at Kiwoom Securities, explained, "The new target price is based on this year's controlling shareholder net profit of 27.2 billion KRW and a price-to-earnings ratio (PER) of 30 times," adding, "We applied the highest possible multiple for the gaming sector by highly valuing the competitiveness of the console segment through P-ui Geojit and the potential of follow-up titles, as well as the intrinsic value of the related production team."

Kiwoom Securities expects P-ui Geojit to sell 730,000 units in the fourth quarter of last year, anticipating higher sales than in the third quarter. Researcher Jingu Kim stated, "Considering events such as package discounts at certain points in the fourth quarter, the blended unit price was lowered from 61 USD in the third quarter to 49 USD in the fourth quarter and subsequent quarters. Based on cumulative sales of 2 million units over three years including the launch quarter, the estimates were incorporated, and the related performance is achievable."

Researcher Kim also believes that Neowiz's valuation reflects value beyond its earnings. He said, "Through the capabilities of the core development team, there is potential to inject the DNA of top developers in the AI era to create unique competitiveness, and by treating the console development team well, Neowiz enjoys a solid segment that large domestic game companies do not possess."

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