[Click eStock] "Mr. Blue, Overseas Sales Growth Expected... Enhancing Corporate Value"

[Asia Economy Reporter Hyunseok Yoo] Hanwha Investment & Securities analyzed on the 28th that Mr. Blue's corporate value is expected to improve due to growth in the comics and gaming sectors. No investment opinion or target price was provided.

Dongha Kim, a researcher at Hanwha Investment & Securities, stated, "In the second quarter, sales in the comics content sector showed a slight slowdown in growth due to a deceleration in new subscriber numbers, while operating profit improved thanks to increased subscription fees. Considering factors such as reduced outdoor activities due to the rainy season and COVID-19 resurgence in the second half of the year, as well as external growth and profitability improvement potential from the release of self-produced webtoons through Orange Studio and Blue Comics, the profit growth trend is expected to continue."

He explained, "The gaming sector's performance was below expectations due to manpower shortages caused by preparations for expansion into Taiwan. However, in the third quarter, the anniversary update of EOS Red's first year in Korea, the opening of new servers, the trending success in Taiwan (ranked 2nd on Google and 16th on Apple as of the previous day, released on July 22), and profitability improvements from increased overseas sales (with most fixed costs borne domestically) are expected to sustain profit growth compared to the previous quarter and the same period last year." He added, "The release of EOS The Blue (PC) in Taiwan and Southeast Asia this month, and the sequential expansion of EOS Red's overseas publishing regions such as Japan and China, are expected to maintain overseas growth momentum."

Hanwha Investment & Securities emphasized that considering Mr. Blue's improving performance and growth potential, an increase in corporate value is anticipated. He explained, "Mr. Blue's stock price rose after June due to growth expectations from EOS Red's first overseas expansion (Taiwan, Hong Kong, Macau), but recently showed some correction. However, an upward trend in the stock price is expected again."

Researcher Kim emphasized, "Given the favorable external environment (growth of the upstream market and the possibility of large platform companies going public), the potential for growth in the comics content sector due to strengthened self-produced webtoons, and overseas-driven performance improvements in the gaming sector in the second half of the year, there appears to be sufficient room for corporate value enhancement. This year's performance is expected to exceed previous estimates (operating profit of 17.3 billion KRW) due to the overseas expansion effect of EOS Red."