**Target Price Raised from 250,000 KRW to 280,000 KRW**
Reflecting Expectations for Lineage and New Releases
**[Seoul Economy]**
Hyundai Motor Securities has forecasted an improvement in the performance of NCSoft (036570) based on the stable profitability of Lineage and the anticipated release of new titles extending into next year. Accordingly, the target price has been adjusted upward to 280,000 KRW.
Kim Hyeon-yong, a researcher at Hyundai Motor Securities, stated in a report on the 13th that “NCSoft recorded an earnings surprise in the second quarter this year,” analyzing that “operating profit surged due to the leverage effect from increased sales while personnel and marketing expenses were controlled.” NCSoft’s second-quarter revenue was 382.4 billion KRW, and operating profit was 15.1 billion KRW, increasing by 3.7% and 70.5% year-on-year, respectively.
The strong performance was driven by NCSoft’s flagship IP, Lineage. Researcher Kim noted, “Sales for Lineage M and Lineage 2M increased by 13.2% and 13.5% year-on-year, respectively, driving overall sales growth,” diagnosing that “Lineage M benefited from its 8th-anniversary update, and Lineage 2M from its launch in Southeast Asia.” He added, “The legacy IP activity, including Aion Global, Lineage M/2M in China, and Lineage W in Southeast Asia, is expected to continue next year.”
Furthermore, the anticipated release of new titles until the second half of next year is also expected to positively impact performance. NCSoft plans a total of eight new releases, aiming to launch one to two games each quarter without concentrating releases during any particular period. Researcher Kim highlighted, “They are exploring opportunities to enter the shooter genre with at least two titles, as well as the subculture and mobile casual fields,” predicting, “New IP promotions, additional game video releases, and testing will take place by the end of the year, with launches expected in the first half of next year.”
Consequently, NCSoft’s target price has been raised from the previous 250,000 KRW to 280,000 KRW. Researcher Kim explained, “The upward adjustment reflects the release of seven new titles next year and the solid profit-generating capability of the legacy IP.”