NC "Strong Q1 Beat; Improved visibility on earnings recovery" (Buy) Han

研报英文原文证据摘录

NC "Strong Q1 Beat; Improved visibility on earnings recovery" (Buy) Han

Global Research

14 May 2026ab

NC Equities

KoreaStrong Q1 Beat; Improved visibility on earnings

recovery Internet Services

12-month rating Buy

12m price target Won364,000Q1 supports our positive view on earnings recovery

Prior : Won287,000

We remain positive on NC as we think visibility on both revenue growth and earnings

has improved meaningfully. Q1 revenue grew 55% YoY, first double digit growth in 3 Price (13 May 2026) Won263,000

years, to Won557bn, 6% above consensus; while op profit of Won113bn (20% OPM) RIC: 036570.KS BBG: 036570 KS

beat consensus by 38%, driven by better than expected performance from Lineage

Classic and contribution from newly consolidated mobile casual gaming subsidiaries. Trading data and key metrics

Management also outlined multiple upcoming launches including Aion2 global in Q3, 52-wk range Won277,500-150,800

Lineage W Southeast Asia launch in May, and several global testing titles in H226 and Market cap. Won5,100b/US$3.42b

beyond. Combined with a structurally lower cost base following restructuring, we think Shares o/s 19.4m (ORD)

the stronger revenue trajectory should drive meaningful operating leverage. We are Free float 78%

raising our 2026E/27E EPS by 27%/26% and now expect 2026 revenue to reach Avg. daily volume ('000) 126

Won2.6trn, above company guidance of Won2.5tr, driven by stronger Lineage Classic Avg. daily value (m) Won30,015.3

performance and the addition of the mobile casual gaming business Just Play from Q2. Common s/h equity (12/26E) Won3740b

Lineage Classic stronger than expected: Lineage Classic generated cumulative P/BV (12/26E) 1.4x

gross sales of Won192bn within 90 days and reached a new daily sales peak Net debt to EBITDA (12/26E) NM