[Click eStock] "Com2uS Focuses on Content, Metaverse, and NFT"

Due to net cash amounting to 400 billion KRW, gaining a comparative advantage in M&A
Hyundai Motor Securities "Maintains Com2uS target price at 200,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Com2uS is focusing on the content business by acquiring Artist Company. It is expected to expand its scope to ecosystems related to the metaverse and non-fungible tokens (NFTs) in the future.

According to Hyundai Motor Securities on the 23rd, Com2uS and its subsidiary WYSIWYG Studios invested 20 billion KRW and 85 billion KRW respectively to establish Artist Holdings and signed a management rights acquisition contract in a structure where Artist Company and Artist Studio are subsidiaries. Artist Company is responsible for management and administration, while Artist Studio handles content production and intellectual property (IP) distribution.

Artist Company is an entertainment agency to which founder Lee Jung-jae, Jung Woo-sung, Ahn Sung-ki, Park So-dam, and Go Ara belong. Additionally, the drama "The Silent Sea" is scheduled to be released on the over-the-top (OTT) platform Netflix on the 24th. Kim Hyun-yong, a researcher at Hyundai Motor Securities, said, "Com2uS is rapidly expanding its reach from dramas and movies to webtoons with WYSIWYG Studios as the focal point of its content business," and evaluated it as "the most aggressive domestic game company in content mergers and acquisitions (M&A)."

Metaverse and NFTs are also seen as future growth engines and are being expanded. Com2uS released a trailer video for its self-developed metaverse platform 'Com2verse.' Based on this, it is expected to commercialize Office World in the second half of next year and expand it into Entertainment World. Furthermore, it plans to launch 'Summoners War Chronicles' as an NFT-based game in the first half of next year and expand its global business areas in the second half.

Researcher Kim explained, "'Summoners War: Sky Arena' has maintained a global daily sales of over 1 billion KRW for seven years and is a core revenue source," adding, "The net cash of 400 billion KRW is at a level that can provide an overwhelming competitive advantage for bold M&A necessary for growth."

Accordingly, Hyundai Motor Securities maintained its investment opinion of 'Buy' for Com2uS and a target stock price of 200,000 KRW. The closing price on the previous day was 156,700 KRW.