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[Alpha Biz= Kim Sangjin] Hyundai Motor Securities forecasts that game developer Krafton will exceed market expectations with its Q4 earnings this year and plans to release at least three self-developed titles next year.

In a report released today, Hyundai Motor Securities estimated Krafton’s Q4 revenue at 687.7 billion won and operating profit at 265.6 billion won, representing year-on-year increases of 28.6% and 61.6%, respectively. Notably, the operating profit is 4% higher than the consensus (market average forecast).

Hyundai Motor Securities noted, "Despite seasonal increases in commission expenses, stabilized labor and marketing costs will drive operating profit growth significantly above the revenue growth rate." Krafton’s projected operating profit margin for this year is an impressive 44.3%.

The firm added, "Krafton is set to release at least three self-developed games next year, while its flagship title, PUBG (PlayerUnknown’s Battlegrounds), aims for remarkable growth through diverse content updates."

The target price for Krafton shares was raised from 400,000 won to 440,000 won, with the investment rating maintained at 'Buy.'

 

 

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