Yuanta Securities has issued a 'buy' rating for Shift Up, a South Korean game developer, with a target price of 90,000 won. This represents a 47% upside from the stock's current price of 61,100 won. The investment firm cites the upcoming release of Shift Up's popular mobile game, 'Goddess of Victory: Nikke', in China as a key driver of growth.

Analyst Lee Chang-young of Yuanta Securities highlighted the massive potential of the Chinese subculture game market, which is estimated to be worth 6 trillion won. 'Nikke' is scheduled to be launched in China in the second quarter through a partnership with Tencent. The game has already garnered significant interest, with pre-registration targets set at 8 million users. This reflects the company's confidence in the game's content and also signals a potential easing of restrictions on Korean content in China.

Yuanta Securities predicts that 'Nikke' will generate an average daily revenue of 1.17 billion won in China. This optimistic forecast is based on the recent trend of Chinese authorities granting licenses to Korean games and the strong performance of Korean mobile games in the Chinese market. As of January 25th, three of the top five highest-grossing mobile games in China were developed in Korea.

In addition to 'Nikke's' success in China, Shift Up is also poised for growth with the upcoming PC release of 'Stellar Blade' on Steam in June. 'Stellar Blade' has already achieved impressive sales figures on consoles, topping the charts in the US and UK upon its release. With positive reviews and an estimated 1.6 million copies sold last year, the game is expected to further boost Shift Up's revenue.

Yuanta Securities also praised Shift Up's operational efficiency, noting that the company's return on equity (ROE) of 30.3% is among the highest in the industry. The investment firm believes that Shift Up has the most efficient game development structure among Korean game developers. This allows the company to leverage its profits when games are successful while maintaining a stable financial position even if a game fails to meet expectations.

Overall, Yuanta Securities believes that Shift Up's strong lineup of games, coupled with its efficient operations and favorable market conditions, make it an attractive investment opportunity. The firm's 'buy' rating and target price of 90,000 won reflect its confidence in Shift Up's growth potential.

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