[Alpha Biz= Ellie Kim] Kiwoom Securities cut its target price for Netmarble to KRW 58,000 from KRW 67,000 on April 30, while maintaining an “outperform” rating.

Analyst Kim Jin-gu said Netmarble’s growth depends on whether its upcoming titles can break away from the conventional MMORPG formula, including so-called “Lineage-like” gameplay models.

“Netmarble has pursued a mobile-focused, multi-title strategy, but has shown limitations in sustaining revenue for individual games,” Kim noted. “While the company aims to diversify its portfolio and drive top-line growth through new releases, those titles must demonstrate gameplay innovation that breaks the existing meta.”

The brokerage added it would maintain a conservative valuation stance until clearer evidence of such competitiveness emerges. It highlighted “SOL: Enchant,” one of Netmarble’s key upcoming titles, as a critical test of whether the company can deliver differentiated gameplay within the MMORPG genre.

Kiwoom estimates Netmarble’s first-quarter revenue at KRW 682.4 billion and operating profit at KRW 59.6 billion. The firm noted that weaker revenue sustainability from existing titles, combined with upfront marketing spending for new releases, likely weighed on margins.

 

 

 

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