[Click eStock] "Mr. Blue, Revaluation Expected with Eos Red Overseas Launch"

[Asia Economy Reporter Hyunseok Yoo] SangSangIn Securities analyzed on the 10th that Mr. Blue's stock price is likely to be re-evaluated due to the overseas release of the mobile game Eos Red. No investment opinion or target price was provided.

SangSangIn Securities expects that Mr. Blue can further improve its operating profit margin through internalization of the content business division. Researcher Jongwon Lee of SangSangIn Securities said, "With the release of self-produced webtoons, stable sales growth of the comic content business division is expected," adding, "Through expanding proprietary IP within the platform, it has become possible to reduce commission fees compared to the existing cost structure where more than 60% of revenue is paid to creators."

He emphasized, "The cumulative number of members on Mr. Blue's platform has increased by about 20% annually over the past three years, reaching 5.6 million in the fourth quarter of last year and approximately 6 million as of the first half of this year," and added, "The average payment amount per transaction on the platform is around 15,000 KRW and is gradually increasing, while the number of monthly subscription customers is estimated to be recovering."

Along with this, the overseas expansion of the mobile game Eos Red is expected to be a strong momentum for the stock price. "From the second quarter onward, the overseas expansion of the game business division, led by the Southeast Asian market for Eos Red, is expected to materialize," he said, explaining, "This IP was ranked 2nd in game sales on the Google Play Store in Korea and Taiwan, and it is important as it can immediately enhance corporate value in terms of stock price momentum."

He added, "Considering the new market entry of Eos Red in the second quarter and the favorable content environment (such as self-operated webtoon services), a mid- to long-term upward trend in the stock price is expected because corporate value improvement is anticipated based on earnings improvement and growth of the game business division," and said, "It is highly likely that re-evaluation as a strategic investment destination that can capture both webtoons and games will be reflected in the stock price."