"Com2uS Highlights Undervalued Appeal Compared to Industry Peers"

[Asia Economy Reporter Park Ji-hwan] Meritz Securities evaluated Com2uS as currently experiencing a period of undervaluation in its stock price compared to its peers, despite showing stable performance growth.

Kim Dong-hee, a researcher at Meritz Securities, predicted, "Last year's fourth-quarter revenue and operating profit are expected to increase by 18.2% and 6.1% respectively, reaching 143.3 billion KRW and 34.2 billion KRW compared to the previous year." Overseas revenue was 115 billion KRW, showing favorable results due to year-end effects such as the November SWC Final and December Christmas package.

Domestic revenue was 28.3 billion KRW, maintaining stable sales as the baseball season was prolonged due to the COVID-19 pandemic. The operating profit margin was 23.9%, with increased labor costs attributed to year-end bonuses and the acquisition of OOTP (a German baseball game company).

Notably, in December last year, Summoners War, as a Korean game, succeeded in obtaining a foreign game license in China for the first time in four years. Researcher Kim Dong-hee emphasized, "Currently, games without licenses on the Chinese Apple App Store are being removed, but this risk has been eliminated," adding, "Full-scale revenue growth is expected this year with Summoners War's official entry into the Chinese Android market."

He stated, "Although Com2uS has shown a 51% stock price increase over the past three months, its PER stands at 15.7 times, which is 36% undervalued compared to the gaming industry's average PER of 24.7 times."