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NHN building. (Photo = NHN) |
[Alpha Biz= Reporter Kim Sangjin] Korea Investment & Securities analyzed on December 5 that the game sector's improvement in 2024 is a key focus for NHN, maintaining a "Buy" rating and a target price of 22,000 KRW.
Korea Investment & Securities stated, "NHN should be highlighted as a company expected to show good performance in the improving game sector next year," noting that the sector is expected to improve due to factors such as the release of multiple new titles and cost reductions, including cuts in labor costs.
However, the firm cautioned that uncertainty regarding the success of games may continue to weigh on the gaming sector next year. They recommended favoring companies that have relatively low valuation pressures, even with current profits from their existing lineups, and identified NHN as fitting this criterion.
The firm added, "Like Krafton and Shift Up, NHN's revenue and profit stability from its existing lineup is high, as its core games are made up of web board and older Japanese casual games." They pointed out that NHN's game sales have consistently stayed around 1 trillion KRW per quarter since 2020, and with the relaxation of regulations on web board games, the sales now range between 1.1 to 1.2 trillion KRW.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
