[Special Stock] Wemade Falls Over 8% on Q1 Earnings Disappointment

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] Wemade is falling more than 8% on the morning of the 12th amid concerns over weak first-quarter earnings.

As of 10:40 a.m. on the same day, Wemade was trading at 88,300 won, down 9.06% (8,800 won) from the previous trading day. At the same time, its affiliate Wemade Max was also trading at 19,700 won, down 8.16% (1,750 won) from the previous trading day.

This is interpreted as a result of securities firms' forecasts that Wemade's first-quarter earnings will be weak. Daol Investment & Securities lowered its target price for Wemade from 130,000 won to 120,000 won on the day, citing expected weak earnings. However, it maintained a buy rating.

Daol Investment & Securities predicted that Wemade's operating profit for the first quarter of this year will record 12.1 billion won, down 56.1% compared to the same period last year. First-quarter sales are expected to increase 74.5% year-on-year to 132.7 billion won.

Kim Hajung, a researcher at Daol Investment & Securities, analyzed, "We are lowering the sales forecast due to sluggish new user inflow for flagship titles such as Mir4 Global," but added, "Expectations for the release of MirM in May and expansion of the Chinese business remain valid."