SOUTH KOREA FIRST TO MARKET

Research evidence excerpt

SOUTH KOREA FIRST TO MARKET

Asia Pacific Equity Research

South Korea First to Market 19 June 2026

Top Stories

| SHIFT UP (Stanley Yang) (462870 KS, OW)

Position early, ahead of multiple IP launches; upgrade to OW

In light of triple-digit pre-launch share price increases for Pearl Abyss and Neowiz, starting 13-15 months ahead of the launch

of Crimson Desert and Lies of P, we see a similar setup for SHIFT UP and recommend investors begin positioning in 2H26, 12-

18 months ahead of a major launch cycle starting early 2028E. We believe SHIFT UP provides an attractive pre-rally profile:

resilient earnings supported by Nikke, a compelling valuation, and a 100% hit track record. We expect Spirit to emerge as the

next Nikke-scale subculture title in early 2028 and Stellar Blade: Blood Rain to be validated as an AAA hit in late 2028-early

2029. We expect new launches to drive a 60% OP CAGR (2026E-29E), which implies a P/E of 12x/10x/4x (2027E/28E/29E).

We upgrade to OW (from N) and raise our Dec-26 PT to W43,000 (from W30,000), driven mainly by a target multiple hike to a

16.8x 2027E P/E (the global peer average) from 12.5x. Near-term catalysts include Nikke’s 2Q top-line momentum and the

Spirit trailer reveal in 2H26.

Korea (Seok Gil Park)

• 2Q exports volume more resilient than expected

• Positive terms of trade continue