November 14, 2012 Company Report Gamevil (063080 KQ) Game Daewoo Securities Co., Ltd. Momentum expected from 4Q expansion into new platforms Chang-kwean Kim +822-768-4321 Expected to offer games via popular gaming platforms in 4Q
[email protected] Gamevil released 30 new games at the G-Star trade show, including 20 games that had not been made public. The company recently rolled out Baseball Superstars 2013 via T Store. For 4Q, the company plans to commercially launch the next series of its flagship titles (e.g., Zenonia 5) and social-network games. Furthermore, Gamevil is scheduled to unveil a number of new titles in 4Q, including 15 games for the domestic market, as well as seven iOS-based games and 16 Android-based games for overseas markets. Most notably, Gamevil plans to provide its games via increasingly popular closed- Buy (Maintain) gaming platforms starting in 4Q, in addition to established open platforms (e.g., T Target Price (12M, W) 145,000 Store, the App Store, Google Play). These new platforms should include LINE (in Share Price (11/13/12, W) 126,000 Japan), KakaoTalk (in Korea), and Tencent Mobile (in China). Expected Return (%) 15.1 EPS Growth (12F, %) 42.7 3Q review: Smooth diversification into new genres Market EPS Growth (12F, %) 8.9 For 3Q, GamevilÊs revenues slightly exceeded our expectations, while operating profit P/E (12F, x) 30.3 missed our estimates. 3Q revenues jumped 65.9% YoY to W16.6bn, as domestic and Market P/E (12F, x) 10.1 overseas revenues expanded 43.2% YoY and 133.6% YoY, respectively.