Netmarble, Expected below 3Q earnings market forecast...Target stock price down(SK Securities)

[Infostock Daily= Reporter An Hoe Hyun] SK Securities expects Netmarble to record earnings below market forecasts for the third quarter of this year on the 23rd. The company maintained its 'Buy' investment opinion and lowered its target stock price to 136,000 won from the previous 160,000 won.

"Sales in the third quarter are expected to rise 3.7% year-on-year to 642.6 billion won and operating profit is expected to fall 18.7% to 68.6 billion won, falling below the consensus," the company explained.

"Japan's IP-based RPG 'The Seven Deadly Sins', which was globally released in March, is gaining popularity in major markets such as North America, but the sales rankings of existing major works such as 'Blade & Soul Revolution' and 'Lineage 2 Revolution' have dropped noticeably due to intensifying competition in the domestic mobile MMORPG market."

However, it is diagnosed that the burden of valuation has decreased due to the recent plunge in stock prices. It also predicted that its performance will improve next year thanks to the launch of its new product.

Reporter An Hoe Hyun ahh@infostock.co.kr