April 20, 2024

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[THE INVESTOR] NCSoft’s launch of a new game has been delayed and investors should approach it with patience, said eBEST Investment and Securities on June 20, maintaining a “buy” recommendation and 500,000 won (US$450.45) target price. 

Its revenue in the second quarter will decline 7 percent on-year to 440.8 billion won and operating profit by 21 percent to 160.9 billion won, as revenue from “Lineage M” has waned and settled down while lacking a new lineup. Daily average revenue from “Lineage M” is around mid-2 billion won in the period and will be maintained at the same level for the time being, said analyst Seong Jong-hwa.

As the release of its major new game has been pushed back by a couple of quarters, a long-term approach would be realistic. Considering that a series of likely hits will be rolled out from next year, it remains unchanged that they will serve as mid- to long-term momentum, said Seong. 

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