ShiftUp cruises to the third place in game companies' market capitalization after listing on KOSPI on the 11th
Jul 11, 2024
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On the 11th, the shift-up price rose 33.16 percent from 60,000 won to 79,900 won, and then rose to up to 895 million won, before rising to around 80,000 won as of 10:20 a.m. The market capitalization once exceeded 5 trillion won and rose to the second place among game companies listed in Korea after Krafton, which was just under 14 trillion won, but it has since come down to the current stock price, ranking third after Krafton and Netmarble at 4.6 trillion won. Netmarble has a market capitalization difference of 300 billion won.
This is higher than NCsoft, which is around 4.1 trillion won. Although the stock market predicts that sales and operating profit will nearly double this year, with sales of 168.6 billion won and 111.1 billion won in operating profit, and that the performance of the new console Stella Blade will reflect, but there are concerns that it has been somewhat overvalued as it has a market cap similar to Netmarble and NCsoft, whose sales range from 1 trillion won to 2 trillion won.
However, considering that stock prices are a representative indicator of future potential, it can be said that the market sees high potential for shift-up growth. It is also possible because it has signed contracts with global game companies representing China and Japan, such as Tencent and Sony, and is fully responsible for publishing, and maintains a huge operating margin that emerged at a time when game companies' stock prices were in the spotlight while focusing mainly on development.
In any case, it is noteworthy how the strategy of focusing development on successful games and IPs through selection and concentration strategies will affect the value and growth of the shift-up in the future, rather than growing in size through mergers and acquisitions, which Kim Hyung-hyung, CEO of the shift-up, emphasized at the IPO meeting.
The industry expects that the successful settlement of the shift-up in the stock market will lead to the spread of positive value in the game industry and attract investors' attention again.
bluesky@sportschosun.com
