▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘CJ E&M to rebound on the back of Netmarble’s IPO’

  • PUBLISHED :March 22, 2017 - 11:54
  • UPDATED :March 22, 2017 - 11:54
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] CJ E&M’s earnings this quarter are expected to rise, and its stake in Netmarble Games will help it rebound as the game developer is planning to go public, said Daishin Securities on March 22.




Its stock price dropped last month before it was revealed that China only accounted for 2 percent of its revenue from content sales, and the country’s economic retaliatory measures against South Korean companies would not impact it, explained analyst Kim Hoe-jae. 

CJ E&M will own 22.09 percent stake after the game company issues new stocks, and its stake will be worth 2.2 trillion won (US$1.95 billion) even when the issue price is set at the low end of the price band, said the analyst. 

“The adequate stock price combining the value of operations and its stake in Netmarble is 94,000 won,” said Kim, but maintained a “buy” recommendation and 91,000 won target price for now. 

Netmarble Games will post solid earnings in the first quarter as its “Lineage 2 Revolution” has been a hit from the beginning, and if its total market value reaches 13 trillion won after IPO, CJ E&M’s stock price might rise up to 106,000 won, noted the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)

EDITOR'S PICKS