[Click eStock] Com2uS Q1 Earnings Disappoint, Target Price Down... Q2 New Releases Performance Crucial

[Asia Economy Reporter Myunghwan Lee] Daishin Securities announced on the 21st that it is lowering the target price of Com2uS by 23%, from 220,000 KRW to 170,000 KRW, citing poor performance in the first quarter of this year. However, the investment rating was maintained as a buy.

Daishin Securities expects the company's first-quarter sales to increase by 11% year-on-year to 129.8 billion KRW, while operating profit is expected to decrease by 44% year-on-year to 9.9 billion KRW. It is analyzed that sales of the flagship title 'Summoners War' and sports genre games are expected to decline compared to the previous quarter due to the off-season for mobile games.

Although first-quarter performance is expected to be weak, Daishin Securities emphasizes that the success of the new lineup in the second quarter is crucial. Com2uS is preparing to release 'Summoners War Chronicles' domestically and 'Com2uS Pro Baseball V22' in the second quarter.

However, Daishin Securities pointed out that the success of the new releases cannot be guaranteed. Researcher Ji-eun Lee of Daishin Securities said, "Considering the poor performance of 'The War of Hundred Years' released in 2021, we cannot be confident about the success of Chronicles," but added, "There is steady demand for the Summoners War intellectual property (IP) in Korea, so it is worth having expectations." 'Summoners War: The War of Hundred Years,' released by Com2uS last year, initially succeeded in popularity but quickly saw a decline in sales due to insufficient system management such as card battles.

There is also a forecast that Com2uS's blockchain platform 'C2X' will expand. Researcher Lee said, "An update introducing P2E (Play to Earn) to The War of Hundred Years based on C2X is starting," and analyzed, "'Com2Verse,' a metaverse platform that will expand the C2X platform ecosystem, is scheduled to be released in the second half of the year."