NC Corp (036570 KP) Buy: 2Q26 preview – ready for rerating

研报英文原文证据摘录

NC Corp (036570 KP) Buy: 2Q26 preview – ready for rerating

the ROE (%) 10.8 13.6 13.5 13.8

mobile casual gaming market, and we expect significant synergies to materialise in

2H26 as NC’s casual game line-up is likely be onboarded onto the JustPlay platform; 52-WEEK PRICE (KRW)

and 2) the full launch impact of AION 2 global expansion: given that Throne and 420000

Liberty generated KRW130-140bn in gross revenue in Western markets within the 290000

first month of launch in 2024, we expect NC to comfortably deliver KRW150bn of

revenue from AION 2 Global in 4Q26. We expect the combined revenue contribution 07/25 01/26 07/26160000

of the ad-tech platform and AION 2 to reach 50% in 4Q26. Target price: 390000 High: 338000 Low: 187000 Current: 252500

Attractive valuation: While we expect NC to deliver OP growth of 3,099%/14%/18% in Source: LSEG IBES, HSBC estimates

2026/27/28, it is currently trading at 2026e/27e/28e PE of 11x/10x/9x. Following sharp

earnings growth in 2026, driven by new game launches and business diversification on the Junhyun Kim* Analyst, Korea Internet Gaming and Entertainment

back of aggressive restructuring in 2024-25, growth is set to naturally decelerate to a The Hongkong and Shanghai Banking Corporation

Limited, Seoul Securities Branch

sustainable pace from 2027 onward. Nevertheless, we point to the strong possibility of junhyun.kim@kr.hsbc.com

valuation multiple expansion given 1) an ad-tech platform value upgrade driven by the +82 2 3706 8763

advancement of business by strengthening the in-app purchase model and its growing

earnings contribution (exhibits 4-5); 2) rising expectations for the upcoming pipeline such * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations