[Infostock Daily= Reporter An Hoe Hyun] On the 21st, KB Securities expected Joycity to grow in the future by strengthening its lineup through new releases and full-fledged webtoon business, saying that overseas sales of major games continue to grow.
Joycity's cumulative performance in the third • fourth quarters of 2020 was 117.8 billion won in sales and 15.1 billion won in operating profit, up 52.4% and 188.5%, respectively, from a year earlier. Growth is accelerating through the benefits of COVID-19 untact(non-face-to-face) and the release of five new works.
Lim Sang-guk, a researcher at KB Securities, explained, "Expectations for future earnings growth and shareholder return are rising, with the decision on free capital increase(allocation of two new shares per share) on the 14th."
Also, "We pay attention to the new webtoon business through the establishment of a subsidiary," the company said, adding, "The webtoon work of existing Joycity's flagship games such as 'FreeStyle' and 'Gunship Battle' will be carried out, and it is expected to strengthen IP awareness and create synergy in profitability and joint marketing through the webtoonization of games."
On the other hand, stock price volatility is likely to increase in the event of delayed release of new products, and there are still overhang issues (4.0% compared to the number of distribution shares) due to the issuance of convertible bonds.
Reporter An Hoe Hyun ahh@infostock.co.kr
