Once a 1 Million-Won 'Emperor Stock,' Now at 200,000 Won... "AION 2's Global Launch Could Be a Turning Point"

[Financial News] NC is preparing for the global launch of its hit title AION 2 in the second half of the year. Korea Investment & Securities maintained its "Buy" rating and target price of 390,000 won, saying that AION 2's global success, along with strong growth in revenue from existing games, could contribute to earnings and boost the company's valuation.
Ho Yoon Jung, an analyst at Korea Investment & Securities, said on the 21st, "Although NC had been showing stable earnings growth, driven by strong revenue growth from Lineage Classic and casual games, its share price underwent a substantial correction because of the market's lack of interest. I recommend paying attention, as the launch of AION 2 in the second half will be an important event that could mark a turning point for the company."
Analyst Jung explained, "The global success of AION 2 is particularly important because NC is preparing additional global MMORPG releases, starting with Horizon Steel Frontiers and Guild Wars 3. If AION 2 successfully establishes itself in the market, expectations for its follow-up titles will naturally rise as well, potentially giving the stock greater upward momentum."
According to Korea Investment & Securities, PC MMORPGs have traditionally been a genre with relatively steady market demand, while supply is extremely limited because few companies develop them. AION 2 was developed with the preferences of global users in mind from the outset, and its high quality has already been validated in the South Korean and Taiwanese markets.
Analyst Jung said, "Even if the IP lacks recognition in Western markets, this is a title that could become a hit if supported by sufficient marketing. Horizon Steel Frontiers, which will be released next, has greater recognition as an IP, so an even larger-scale success is expected."
He added, "Lineage Classic is performing steadily, and casual games are also seeing strong revenue growth. The period ahead of the release of highly anticipated new titles is typically a time when uncertainty over their performance comes to the fore and investors are reluctant to invest. However, considering together the improving earnings power and the potential of new titles scheduled for release through next year, it is advisable to take a Buy approach."
[email protected] Joo Won-gyu Reporter