[Click eStock] "Wemade Lowers Mir Revenue Estimates... Blockchain Business 'In the Dark'"

[Asia Economy Reporter Hwang Yoon-joo] Daol Investment & Securities announced on the 28th that it is difficult to specify the turnaround point for Wemade's blockchain business and has downgraded the sales forecast for the June new release, 'Mir M.' Accordingly, it maintained a 'Buy' investment rating and a target price of 70,000 KRW.

Kim Ha-jung, a researcher at Daol Investment & Securities, stated, "Considering the valuation based on cryptocurrency profits not recorded as accounting income and the platform business value, both existing titles and the June new release recorded disappointing sales, leading to a downward revision of the new game's sales forecast."

Researcher Kim explained, "Despite the release of Mir M, the reason for the expected operating loss in the second half of the year is the gap between the core game business and the blockchain business, which is the direction of personnel recruitment."

He added, "Since it is difficult to concretely present the turnaround point of the blockchain business, if approached as an investment point, there is a possibility of an indefinite wait."

Researcher Kim evaluated that the core momentum for Wemade as a game company lies in the two new MMORPG titles to be unveiled at G-STAR on November 17. Accordingly, he newly reflected approximately 100 billion KRW in sales estimates for new releases in 2023.

He said, "Due to the poor initial performance of Mir M, the daily sales in the second half of 2022 in Korea have been revised down from the previous 650 million KRW to a new 360 million KRW, and the 2023 sales estimate has been lowered from 500 million KRW to 200 million KRW." However, the overseas daily sales estimate for 2023 (540 million KRW) was maintained.