NC Corporation: Still plenty of room to the upside: raise PT to W360K

Research evidence excerpt

NC Corporation: Still plenty of room to the upside: raise PT to W360K

Idea

May 14, 2026 01:25 PM GMT

Morgan Stanley & Co. International plc, Seoul Branch+MNC Corporation | Asia Pacific Seyon Park

Equity Analyst

Still plenty of room to the Seyon.Park@morganstanley.comSohyun Park +82 2 399-4936

Sohyun.Park@morganstanley.com +82 2 399-4872

upside: raise PT to W360K

NC Corporation (036570.KS, 036570 KP)

What’s Changed Top Pick

NC Corporation (036570.KS) From To S. Korea Telecoms, Media & Internet | S. Korea

Price Target W310,000 W360,000

Stock Rating Overweight

Industry View In-Line

1Q26 proved NC's earnings recovery story is the real deal, and PriceUp/downsidetarget to price target (%) W360,00029

still in the early stages offering a strong pipeline of games and Shr price, close (May 14, 2026) W279,000

52-Week Range W293,000-145,200

upside potential from casual games. Upward earnings revisions Sh out, dil, curr (mn) 19

Mkt cap, curr (bn) W5,412

mean valuations remain attractive despite the rally. Reiterate EV, curr (bn) W4,005

Avg daily trading value (bn) W30

Top Pick.

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

Lineage Classic has been an unexpected success: Grossing more than W100bn in EPS (W)** 17,877 23,470 23,114 24,655

Prior EPS (W)** - 17,722 20,944 20,918

less than 60 days, Lineage Classic has emerged as the go-to MMORPG game for EPS (W)§ 14,593 16,513 18,627 19,795

Korea, showing success in attracting gamers from other Lineage-like titles. As the Revenue, net (W bn) 1,372 2,618 3,043 3,257

EBITDA (W bn) (23) 597 658 701

game is published directly by NC (distributed over Purple), and marketing spend has ModelWare net inc (W 347 455 448 478

been at a minimum, we estimate gross margins for this title to be well over 80%. bn)

P/E 11.3 11.9 12.1 11.3