[Edaily Reporter Park Sun-Yeop ] Ahead of the second-quarter earnings season for the gaming sector, analysts have noted that KRAFTON(259960)and NC (NCsoftCorporation(036570)) are raising earnings expectations based on the solid performance of their existing games. In contrast, Netmarble Corporation(251270)is expected to see its earnings estimates lowered due to the underperformance of new titles in the first half of the year, indicating that performance will vary significantly among gaming companies.
In a report released on the 24th, Lee Jun-ho, an analyst at Hana Securities, maintained an “Overweight” investment rating for the gaming sector and named KRAFTON and NC as top picks. The assessment is based on the fact that earnings forecasts for both companies have been revised upward for the second quarter, following the first quarter, and that existing games are likely to continue performing well in the third and fourth quarters.

The analyst noted, “KRAFTON and NC are seeing their currently live games continue to outperform expectations,” adding, “With 12-month forward price-to-earnings (P/E) ratios at 9x and 10x, respectively, they are significantly undervalued.” He explained that if earnings estimates are raised further, valuation pressures could ease even more.
KRAFTON’s second-quarter operating profit is expected to reach 433.7 billion won, a 76.2% increase year-over-year, exceeding the already elevated market forecast by approximately 16%. Revenue is projected to rise 95.3% year-over-year to 1.2927 trillion won.
In particular, revenue from the PC segment is estimated to reach 456 billion won, a 107.6% increase year-over-year. With the average number of concurrent users for the PC version of “PUBG: Battlegrounds” on Steam reaching 350,000 in the second quarter—up 13.6% year-over-year and 19.7% quarter-over-quarter—the increase in users is seen as having driven revenue growth. The initial performance of “Subnautica 2” was also reflected in the financial results.
New releases are expected to be the key factor influencing the stock price going forward. KRAFTON plans to unveil five new titles at Gamescom this August, including “NO LAW,” “Project Zeta,” “Age Twister,” “Tarae: Unbound,” and an unannounced title from PUBG Studio. Hana Securities forecasts that a full-scale release cycle for new titles will begin in 2027.
NC’s second-quarter operating profit is expected to reach 134.5 billion won, a 792.0% increase year-over-year and an 18.7% increase quarter-over-quarter, in line with market forecasts. Revenue is projected to rise 79.0% year-over-year to 684.6 billion won.
“Aion 2” is estimated to have generated 88.9 billion won in revenue for the second quarter, with average daily revenue of approximately 1 billion won. Although revenue declined compared to the first quarter, analysts suggest there is potential for a rebound following the Chapter 2 update in July.
“Lineage Classic” is assessed to have outperformed expectations, recording second-quarter revenue of 157.5 billion won and average daily revenue of approximately 1.8 billion won. Analysts explain that updates to content and the monetization model (BM) are contributing to the game’s sustained popularity.
Global expansion is also on the horizon. “Aion 2 Global” is expected to launch officially after a five-day early access period for pre-purchasers starting September 30. Following this, the company is expected to increase its global revenue share with titles such as “Horizon: Steel Frontiers” in 2027 and “Guild Wars 3” in 2028.
#Regarding SHIFT UP and NEOWIZ(095660), analysts assessed that current stock prices are effectively at rock bottom. SHIFT UP’s second-quarter operating profit is projected to reach 33.1 billion won, exceeding market forecasts by about 19%. The results were supported by the impact of the 3.5th-anniversary update for ‘Goddess of Victory: NIKKE’ and stable sales of ‘Stella Blade.’
However, Netmarble Corporation’s second-quarter operating profit is estimated to be 77.8 billion won, falling 12.5% short of market expectations. This is due to *The Seven Deadly Sins: Origin* and *MonGil: Star Dive*, released in the first half of the year, failing to meet expectations, coupled with increased marketing expenses.
The analyst stated, “Netmarble Corporation’s downward revisions to its estimates are likely to come to an end following this second-quarter earnings announcement,” adding, “A rebound—driven by the unexpected success of new titles in the second half of the year or major updates to existing titles—is necessary to restore the company’s value.”