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[Alpha Biz=(Chicago) Reporter Paul Lee] SK Securities raised its target price of Krafton to 250,000 won from 210,000 won.
SK Securities maintained its investment opinion on Krafton on the 17th and raised its target price from 210,000 won to 250,000 won.
"Although stock price volatility due to Chinese regulations may be high in the short term, it is expected to increase new performance and secure both earnings stability and growth based on continuous investment in IP (intellectual property) in the mid- to long-term," SK Securities said.
SK Securities said, "sales in the fourth quarter of 2023 decreased by 3.9% compared to the previous quarter (compared to the previous quarter) to 432.5 billion won, operating profit decreased by 48.2% to 98.1 billion won, and operating profit was slightly below the consensus (average market forecast)," and analyzed, "marketing cost execution was greater than expected."
"DefenseDerby TV commercials, Rondo global marketing and BGMI local campaigns are estimated to have executed 47.7 billion won in the fourth quarter and 60 percent of annual marketing costs in the fourth quarter of last year," SK Securities said. "We defended well despite the off-season, while PCs rose 1.8 percent to 123.5 billion won and mobile fell 5.7 percent to 291.4 billion won."
"Dark and Darker Mobile is in the final stage of development with the goal of early summer soft launch," SK Securities said. "It is expected to be released in order in countries such as Asia, the USA and the Middle East where existing Battle Royale genres are popular."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
