NC Corp (036570 KP) Buy: 1Q26 review – A new chapter begins

Research evidence excerpt

NC Corp (036570 KP) Buy: 1Q26 review – A new chapter begins

ROE (%) 10.8 12.5 13.5 13.7

1) explosive earnings growth of JustPlay, an ad-tech based loyalty gaming platform,

52-WEEK PRICE (KRW)

which will be consolidated from 2Q26 (exhibits 2-4 for growth outlook); 2) continuous

utilisation of legacy IPs including spin-off game launches, regional expansion of existing 420000

titles, and IP licensing; and 3) promising new titles including Horizon: Steel Frontier, 270000

which we expect NC to launch in 2027. In particular, we think the market still

underestimates the growth potential of NC’s casual game business. We highlight 05/25 11/25 05/26

JustPlay’s 1) fast-growing MAU by targeting a bigger TAM (securing iOS users) than its Target price: 390000 High: 277500 Low: 150800 Current: 263000

peers; 2) strong earnings growth (HSBCe: 2025-28e sales CAGR of 50%); and Source: LSEG IBES, HSBC estimates

3) favourable positioning for margin expansion given its abundant 1P content.

Junhyun Kim*

Earnings outlook: We lift our 2026-28 sales estimates by 3%/4%/5%, respectively, Analyst, Korea Internet Gaming and Entertainment

given 1) weaker-than-expected cannibalisation impact regarding legacy IP utilisation; The Hongkong and Shanghai Banking Corporation

Limited, Seoul Securities Branch

2) softer-than-expected revenue decline in Lineage Classic and AION 2; and 3) better junhyun.kim@kr.hsbc.com

growth outlook of JustPlay. Although we see limited margin expansion given high +82 2 3706 8763

user acquisition marketing expenses for the mobile casual game business, our 2026-

28 OP estimates are 39%/43%/57% above Bloomberg consensus with a more bullish * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations