[Click e-Stock] "Neowiz Expected to Achieve Record-High Quarterly Results in Q3... Target Price Raised"

Eugene Investment & Securities analyzed on October 15 that Neowiz is expected to achieve its highest-ever quarterly performance in the third quarter. The company maintained its "Buy" investment rating and raised its target price to 35,000 won.

Eugene Investment & Securities projected that Neowiz will achieve sales of 120.6 billion won and operating profit of 29.1 billion won in the third quarter. This represents an increase of 30% and 350%, respectively, compared to the same period last year.

Jung Euihoon, a researcher at Eugene Investment & Securities, stated, "Operating profit is expected to significantly exceed the consensus estimate of 12.8 billion won," and added, "While the impact of Lies of P DLC sales in the PC and console segments may decrease, royalty revenue generated from being listed on PlayStation Plus in August will contribute to earnings."

He further noted, "A new title released on September 11 surpassed 500,000 units in global sales within just two weeks, and it is estimated that this alone contributed more than 10 billion won in profit in the third quarter."

He also said, "Strong performance is expected from the mobile segment as well," explaining, "Not only did Brown Dust 2 benefit from the effects of its second anniversary update that began in June, but a significant portion of revenue generated in the second quarter was deferred and recognized in the third quarter."

He expressed optimism for next year's results as well. "While it may be disappointing that there are no new major releases in the fourth quarter to continue the strong third quarter performance," he said, "existing titles continue to generate steady revenue, and meaningful achievements have been recorded in indie games. This is sufficient to fuel expectations for next year's major new title lineup."

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