[Click e-Stock] "Netmarble: New Game Release Dates Need Confirmation... Target Price Cut"

Shin Young Securities Cuts Netmarble's Target Price to 50,000 Won

Shin Young Securities said on October 13 that it expects the release dates of Netmarble's titles scheduled for the second half of the year to be pushed back. It lowered its target price to 50,000 won from 60,000 won while maintaining its "Buy" rating.

"The target price cut reflects the postponement to next year of the release of 'Shangri-La Frontier: The Seven Strongest Species,' a title scheduled for the second half of the year," said Kim Jihyun, a researcher at Shin Young Securities. "There is currently no public information on the title's release date, and an anime adaptation of the original intellectual property (IP) is scheduled to air in January 2027."

"Among the three new titles announced, 'Solo Leveling: KARMA,' which appears likely to launch first, is scheduled for release at the end of the year, so we expect a delay," the researcher added.

Shin Young Securities forecast Netmarble's third-quarter revenue at 699.2 billion won, down 8% from the previous quarter, and operating profit at 61.9 billion won, down 16%. Revenue from 'SOL: enchant' will be reflected this quarter, and development fees and IP royalty fees are expected to rise in the second half of the year.

Royalty fees are expected to increase this quarter as revenue from new publishing titles and collaborations grows. However, payment processing fees and the overall fee rate are expected to decline starting next year.

"Its subsidiary SpinX began building its own web payment system in the fourth quarter of 2025 and has been introducing its own payment system since the first quarter of 2026," Kim said. "As a result of lower fees at the Google Store, Netmarble's payment processing costs are expected to decrease starting in the second half of the year, since most of its revenue comes from mobile games." However, the fee-reduction policy is scheduled to take effect next year in South Korea and Japan, which account for most of Netmarble's revenue.

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