PearlAbyss Corp: 1Q26 earnings stronger than expected; reit. Neutral but lift PO to W62K

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PearlAbyss Corp: 1Q26 earnings stronger than expected; reit. Neutral but lift PO to W62K

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PearlAbyss Corp

1Q26 earnings stronger than expected;

reit. Neutral but lift PO to W62K

Reiterate Rating: NEUTRAL | PO: 62,000 KRW | Price: 50,600 KRW

Reiterate Neutral but raise our PO to W62,000 14 May 2026

We raise our PO for PearlAbyss (PA) to W62K (23% upside potential) from W59K, mainly Equity

driven by stronger-than-expected Crimson Desert (CD) revenue trend. We raise our CD

revenue from W375bn to W667bn in 2026E. However, as market’s focus gradually

Key Changesmoves from the initial CD result (post its March release) to normalized earnings

generation, we shift our valuation anchor from 2026E to 2H26-1H27E and cut our target (W) Previous Current

multiple from 23x (0.5SD above historical average) to 20x P/E (historical average). We Price Obj. 59,000.00 62,000.00

believe PA should gradually transition closer to its historical average valuation, as PA’s 2026E Rev (m) 717,676.4 905,021.4

profitability is expected to normalize at 30% OPM over the next 3 years, largely in line 2027E Rev (m) 487,579.7 436,332.9

with its historical 2018~2020 30% average OPM. We reiterate Neutral. While 2028E Rev (m) 520,323.3 431,581.4

recognizing CD’s upside potential, we flag execution risks, as we expect earnings to be 2026E EPS 2,537.52 5,749.57

driven by CD in 2026, but we have limited visibility into pipelines beyond CD – DokeV 2027E EPS 1,404.28 1,492.49

targeted for release at least 2 years, and PLAN8 slated for launch after DokeV. 2028E EPS 1,445.52 1,496.50

1Q26 earnings stronger than expected Susie Lee >>

Research Analyst

PA reported 1Q26 consolidated OP of W212bn, above consensus of W148bn, primarily Merrill Lynch (Seoul)