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Kakao Games (photo=Kakao Games) |
[Alpha Biz= Reporter Kim Jisun] SK Securities lowered its target price from 30,000 won to 23,000 won on the 23rd, saying its first-quarter operating profit will be below the consensus (market average forecast) due to a drop in Kakao Games' existing sales.
"The operating profit of Kakao Games in the first quarter of this year will be 12 billion won, below the consensus (14.5 billion won)," SK Securities said. "Although 'ROM' released in February showed solid results, marketing costs and payment fees related to 'ROM' have increased, and sales of existing multiplayer role-playing games (MMORPG) such as 'Odin' and 'Ares' have decreased."
"It is positive that many releases are waiting for release, but because there are many publishing works, it is burdensome to continue to be accompanied by the execution of payment fees and marketing costs," SK Securities said. "Another factor of concern is the lack of visibility due to high performance volatility in the non-game sector depending on the macro situation."
SK Securities also lowered its existing estimates by 57% and 41%, respectively, expecting annual operating profit of 100 billion won and 170 billion won for this year and next year, respectively.
SK Securities maintained its investment opinion as 'neutral', saying, "The current stock price is 22 times the 12-month leading stock price return (P/E), which is not as attractive as peer Group."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
