[Click eStock] "Com2uS, Expected Title Sales Ranking Declines"... Target Price Down 38%

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities announced on the 9th that it has adjusted its investment rating for Com2uS from Buy to Hold, and lowered the target price from 210,000 KRW to 130,000 KRW, citing that despite the initial performance of the highly anticipated 'Summoners War: Hundred Years' War', the app store sales ranking is rapidly declining.

Com2uS stated that 'Summoners War: Hundred Years' War' recorded sales of 5 billion KRW in the first 3 days and 10 billion KRW in the first 10 days after its release. However, in major countries such as France, Germany, and Korea, where the initial performance was favorable, the sales ranking fell outside the top 100. Considering the significant drop in ranking, it is difficult to expect a rebound, and taking into account the increase in various costs including marketing expenses due to the global launch, the earnings estimates have been revised downward.

Operating profit for this year is estimated to decrease by 19.7% year-on-year to 91.6 billion KRW.

Com2uS's second-quarter earnings are expected to show sales of 141 billion KRW, down 4.4% year-on-year, and operating profit of 22.5 billion KRW, a decrease of 41%. Jaemin Ahn, a researcher at NH Investment & Securities, said, "Operating profit will fall significantly short of the previous estimate of 41.2 billion KRW and the market consensus of 43.1 billion KRW." He added, "'Summoners War: Hundred Years' War' is expected to generate about 18 billion KRW in sales in the second quarter, but a decline in sales is inevitable from the third quarter onward, and marketing expenses in the second quarter are estimated to increase by 37.5% year-on-year to 29 billion KRW due to the release of the new title."