[Click eStock] "Netmarble, MMORPG Performance Crucial This Year"

Target Price Lowered from 68,000 KRW to 52,000 KRW

Hana Securities downgraded the target price for Netmarble from 68,000 KRW to 52,000 KRW on the 12th, stating that the 2024 releases performed below expectations. The investment rating was maintained as 'Buy.'

Netmarble achieved its biggest hit ever last year with the release of the action game "Solo Leveling: ARISE," based on the modern fantasy novel "Na Honjaman Level Up," but it was criticized for lacking staying power. Junho Lee, a researcher at Hana Securities, said, "To establish stable profit strength, it is necessary to generate steady sales after the release quarter through PLC (Product Life Cycle) management," adding, "To increase Netmarble's upside, expanding the PLC of games using external IPs and the success of original IPs are important."

Netmarble's operating revenue for 2025 is estimated to decrease by 2.4% year-on-year to 2.599 trillion KRW, and operating profit is expected to decline by 5.4% to 204 billion KRW. This is due to the decline in sales of last year's releases and the shift of the expected launch timing of "The Seven Deadly Sins: Origin" to the fourth quarter. The researcher noted, "Although multiple new titles are scheduled for release in 2025, a higher-than-expected performance from the three MMORPGs (RF Online Next, Project SOL, TheRed: Blood Heir) is necessary to achieve profit growth compared to the previous year."

Additionally, "Game of Thrones: King's Road" and "Seven Knights Reverse" are set to launch in the first half of the year, with the console version of "Solo Leveling: ARISE" planned for the second half. The researcher analyzed, "Initial sales can be expected due to IP power," but added, "While the console version launch is positive in terms of platform expansion, a downward adjustment of the business model is anticipated, so its contribution to earnings is expected to be limited."

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