| Neowiz Games (095660) : FIFA Online 2 sales to jump 80% QoQ in 3Q10F | |||
| Date | Jul/29/2010 | PDF View |
Neowiz Games_100729.pdf
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| - The counter lifted its 2010 sales and operating profit guidance 23.5% and 22.2% from W340bn and W90bn, respectively, to W420bn and W110bn. We expect the 2010F sales and operating profit to grow 48% YoY and 38.1% YoY to W410.3bn and W106bn, respectively, and consider the new guidance achievable as the respective differences from our estimates are a mere 2.3% and 3.7% - The 2Q10 sales gained 3.4% QoQ and beat the consensus by 2.2% as publishing climbed 6.8% QoQ thanks to the quarterly rise of 18.5% overseas (W34.6bn), although web-board game sales dropped 4.4% QoQ. Operating profit and earnings before tax missed the consensus by 13.1% and 19.5%, respectively, due to larger marketing and depreciation costs - We reiterate BUY with the 12-month price target of W55,700 on the following. 1) Growth momentum should maintain in 3Q10 with respective sales and operating profit jumping 17% QoQ and 30.3% QoQ as FIFA Online 2 gains popularity. 2) The counter’s 2010 guidance should be achievable backed by satisfactory sales of FIFA Online 2 and exports. 3) We consider the counter with a 2010F PER of 9.7x as undervalued given its big growth momentum |
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Korea Daily (Poongsan, LG Electronics..) Jul/29/2010 |
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KIS Morning Brief (Poongsan, LG Electronics..) Jul/29/2010 |