Stock Reports

KRAFTON: Expectations Rise for PUBG Growth and New Title Momentum… Undervalued—NH

Shin Ha-yeon
2026-07-02 07:43:50
[Edaily Reporter Shin Ha-yeon ] On the 2nd, NH INVESTMENT & SECURITIES maintained its “Buy” rating and target price of 400,000 won for KRAFTON(259960), noting that the growth momentum of its flagship intellectual property (IP), “PUBG,” is expected to continue, bolstered by momentum from new releases.

Ahn Jae-min, an analyst at NH INVESTMENT & SECURITIES, stated, “PUBG’s strong growth momentum, which continued from the first quarter into the second quarter, is expected to drive significant earnings growth in 2026.” He added, “Despite this strong earnings growth, the expected price-to-earnings ratio (PER) for 2026 is only 10.3x, indicating the stock remains undervalued.”

The firm forecasts this year’s operating profit to reach 1.502 trillion won, a 42.5% increase year-over-year. Analysts expect PUBG’s revenue growth to continue in the second quarter following the first quarter, and the success of “Subnautica 2,” released last May, is also expected to contribute to improved earnings.

Second-quarter earnings are also expected to exceed market expectations. NH INVESTMENT & SECURITIES estimated KRAFTON’s second-quarter consolidated revenue at 1.334 trillion won (up 101.5% year-over-year) and operating profit at 432.9 billion won (up 75.9%). These figures exceed both the firm’s previous estimate (283 billion won) and the market consensus (331.7 billion won).

In the PC games segment, the firm expects to see the positive impact of various promotions, including PUBG’s 9th-anniversary event, the Black Market, the Harley-Davidson collaboration, and the “Payday” mode. Additionally, “Subnautica 2,” which launched in early access on May 15, is estimated to have sold over 5 million copies in the second quarter alone, generating approximately 1980억 won in revenue. Mobile game revenue is also projected to reach 5157억 won, continuing the robust growth trend seen in the first quarter.

The momentum from new releases was also cited as a factor to watch. Analyst Ahn stated, “At Gamescom 2026, to be held in Germany this August, the company plans to unveil five new titles, including a new game based on the PUBG IP, as well as ‘NO LAW,’ ‘Project Zeta,’ ‘Age Twister,’ and ‘Tare,’” adding, “This should alleviate concerns about a lack of new releases that have been raised in the past.”

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