PearlAbyss Corp: Launch-year upside potential, but post-launch sustainability risk

Research evidence excerpt

PearlAbyss Corp: Launch-year upside potential, but post-launch sustainability risk

Accessible version

PearlAbyss Corp

Launch-year upside potential, but post-

launch sustainability risk

Reiterate Rating: NEUTRAL | PO: 43,000 KRW | Price: 35,100 KRW

Reiterate Neutral, revise down PO to W43,000 14 July 2026

We reiterate a Neutral rating on PearlAbyss (PA) despite Crimson Desert’s (CD) expected Equity

launch-year earnings rebound, as we believe risk-reward remains balanced at the current

share price. CD, as a blockbuster title, drove strong launch-year earnings over 1Q-2Q26;

Key Changeshowever, sales may be frontloaded, with momentum likely fading from 2Q26 onward.

PA’s sales surged 244% QoQ in 1Q26, but we estimate 2Q/3Q/4Q26 revenue to decline (W) Previous Current

15%/ 45%/12% QoQ, as CD’s launch demand normalizes. We estimate 2027/28 revenue Price Obj. 62,000.00 43,000.00

to decline 48%/2% YoY, highlighting the front-loaded nature of CD’s sales profile. That 2026E Rev (m) 905,021.4 890,021.4

said, we also see limited downside risk, as PA is expected to sustain high-20% OPM in 2027E Rev (m) 436,332.9 461,332.9

2027/28, supported by CD’s ongoing contribution and additional pipeline launches. 2028E Rev (m) 431,581.4 451,581.4

2026E EPS 5,749.57 5,551.85

2027E EPS 1,492.49 1,774.69Revise estimates to reflect new announcement

We cut our 2026E revenue by 2%, reflecting our view that CD sales could be more 2028E EPS 1,496.50 1,665.32

frontloaded than previously expected. However, we raise our 2027E/28E revenue by

6%/5%, to reflect potential contribution from DLC expansion and post-launch content, Jinhan Chun >>

Research Analyst

Doke V. Given PA’s high operating leverage, modest changes in revenue assumptions Merrill Lynch (Seoul)

result in larger revisions to OP and EPS.