To recap, NCSoft is an online games developer and publisher and has created popular franchises such as the Lineage, Aion and Guild Wars series. The company has many successful intellectual properties (IPs), with multiple flagship IPs diversified across various product lines and platforms. As the company has a diverse game portfolio, NCSoft’s business model has sustainable longevity, which is further supported by the extensions of growth cycles through IP utilisation across various platforms. The company’s competitive edge stems from its technological capabilities, as it is a global leader in AI R&D, mainly focusing on enhancing AI capabilities in gaming, culture and society and setting cultural standards for AI use.
NCSoft Corp: -34.7%
Missing analyst expectations and management guidance can sometimes have an adverse impact on the share price, especially if the business is seasonal. This may explain NCSoft Corp’s underperformance of 34.7% losses compared to the benchmark Kospi’s 7.4% returns. However, we think NCSoft’s business fundamentals and prospects are well above its current trading price of KRW302,500 ($313.83). Based on our updated in-house valuations, we believe the intrinsic value of the company is around 45% above its current share price.
