[Click eStock] "DearU, Big Growth Expected in 2023 Performance"

[Asia Economy Reporter Hwang Yoon-joo] Yuanta Securities forecasted significant growth in DearU's performance in 2023 on the 1st. They initiated coverage with a 'Buy' rating and a target price of 52,000 KRW.

Researcher Lee Hye-in of Yuanta Securities stated, "We expect 2023 sales to increase by 100% compared to this year, reaching 103 billion KRW, and operating profit to rise by 118% to 40.5 billion KRW."

Sales and operating profit for 2022 are expected to be 51.6 billion KRW and 18.6 billion KRW, respectively, representing increases of 23% and 41% compared to the previous year.

Researcher Lee explained, "Starting as early as Q4 this year, we anticipate the introduction of a paid BM for Bubble Live, recruitment of multiple overseas artists, and the launch of the Android version app in China. In particular, regarding the recruitment of overseas artists, active discussions are underway with well-known local agencies in Japan, the United States, and other countries."

She added, "Due to these business achievements, the increase in subscribers and the rise in ARPU (Average Revenue Per User) are expected to accelerate from Q1 2023."

She emphasized, "As the entry of overseas artists accelerates, DearU's position as a global fan communication platform will be further strengthened."