[Edaily Reporter Hyera Lee ] On the 3rd, KYOBOSECURITIESCO.,LTD. projected that #SHIFT UP’s second-quarter earnings would exceed market expectations. This forecast is based on the expectation that the continued strong sales of “Nikke,” coupled with the upcoming announcements and launches of new titles, will drive earnings and provide momentum for the stock price. The firm maintained its target price at 42,000 won.

Kim Dong-woo, an analyst at KYOBOSECURITIESCO.,LTD., stated in a report released that day, “We expect second-quarter earnings to exceed estimates for both revenue and operating profit.” He added, “With ‘NIKKE’ sales remaining robust and ‘Stella Blade’ sales having largely stabilized, downward revisions to earnings estimates through next year are likely to be limited.”
KYOBOSECURITIESCO.,LTD. estimated SHIFT UP’s second-quarter revenue at 57.4 billion won and operating profit at 30.4 billion won. These figures represent year-over-year declines of 48.9% and 55.5%, respectively. However, compared to the previous quarter, they represent increases of 21.4% and 41.2%, respectively.
The firm expects the global market for its flagship game, “NIKKE,” to drive earnings. Analyst Kim explained, “Revenue from ‘NIKKE’ is expected to reach 46.4 billion won, with global revenue (excluding China) projected to rise 20.8% year-over-year due to the 3.5-anniversary update.” He added, “Revenue in China is expected to decline to 4.2 billion won as the initial launch effect from last year fades.” He continued, “‘Stella Blade’ is expected to record revenue of 8.4 billion won as sales continue to stabilize at a lower level.”
On the cost front, the forecast anticipates the impact of Unbound’s consolidation into the consolidated financial statements. Analyst Kim analyzed, “While personnel expenses and fixed costs will increase due to Unbound’s consolidation, variable costs will decrease significantly due to lower commission payments related to ‘Stella Blade.’”
The company cited its lineup of new titles as a driver of medium- to long-term growth. He said, “Expectations for profit growth after 2028 will be driven by the upcoming title ‘Stella Blade: Bloodrain,’ unveiled last June, and ‘Spirits,’ expected to be announced in the second half of the year,” adding, “The fourth-quarter release of ‘Stella Blade’ for the Nintendo Switch 2 and Unbound’s AA-tier new title in 2027–2028 are also factors to watch.”
He continued, “While Unbound is a factor driving short-term cost increases, the annual net loss is expected to be limited to approximately 12 billion won,” adding, “By securing new titles from a development team led by Shinji Mikami—who worked on *Resident Evil*, *Devil May Cry*, and *The Evil Within*—the company is expected to rapidly grow into a game developer with three or more mega intellectual properties (IPs) in the long term."