[Click eStock] "'Limited Appeal' Pearl Abyss, Investment Rating Neutral"

On the 22nd, Korea Investment & Securities maintained a neutral investment opinion on Pearl Abyss, stating, "Since there is at least six months or more remaining until the release of the new title Red Desert, there is no reason to rush into investment." No target price was provided.

On the same day, researcher Jeong Ho-yoon of Korea Investment & Securities said, "If Red Desert achieves box office success beyond market expectations, the stock price could rebound, but given the position of domestic game companies in the global PC and console markets, the possibility of selling more than 5 million copies is limited."

Pearl Abyss's third-quarter sales this year are expected to be 78.9 billion KRW, a 7.1% decrease compared to the same period last year. Operating loss is forecasted at 12.1 billion KRW (turning to a deficit), which is expected to fall short of the market average forecast. Researcher Jeong predicted, "There were no special new releases in the third quarter, and sales of Black Desert are expected to decrease by 17% to 56.8 billion KRW compared to the same period last year."

Online sales are projected to decline by 27.9% from the same period last year to 37.7 billion KRW, continuing the downward trend compared to the previous quarter. Mobile sales are expected to increase by 45.3% to 15.9 billion KRW compared to the same period last year, but a continuous decline is anticipated after a rebound in the first quarter of this year. Operating expenses are forecasted at 91 billion KRW, with marketing costs increasing compared to the previous quarter due to participation in Gamescom.

Researcher Jeong said, "Participation in Gamescom last summer increased the visibility of Pearl Abyss's Red Desert release, but it is still difficult to launch this year," adding, "The release schedule is expected around the end of the second quarter of next year. Sales of Red Desert are estimated at about 3 million copies during the first year after release, projecting next year's sales at approximately 160 billion KRW."

He added, "With the release of Red Desert, Pearl Abyss's net profit is expected to recover to about 100 billion KRW next year, but I believe this level of performance is already sufficiently reflected in the stock price," and "The unclear growth story after Red Desert is also a burden."

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