April 25, 2024

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[THE INVESTOR] NCSoft remains underappreciated despite its mega hit new mobile game “Lineage M,” said Shinhan Investment on June 26, maintaining a “buy” recommendation and raising the target price to 510,000 won (US$448.94) from 460,000 won.

Its revenue and number of users on the first day of release reached 10.7 billion won and 1.26 million, respectively. It topped that of Netmarble Games’ “Lineage 2 Revolution.” “The daily revenue of the game will exceed 15 billion won soon, said analyst Lee Mun-jong.

The missing item exchange function swayed the stock price but it has secured users on iOS, and the updates will be completed by early July to cushion the sudden decline in revenue, said the analyst. 

Early revenue from the game beat the estimated 7 billion won, and although it stock price hiked 11 percent on the previous day, its PER is still at 13.6 times, much lower than that of global rivals, added Lee.

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