[Click eStock] "Com2uS, High Possibility of Maintaining Chronicle Performance"

On the 29th, Korea Investment & Securities maintained a buy rating and a target price of 95,000 KRW for Com2uS, stating that the recently released Summoners War Chronicle is likely to sustain its performance.

Chronicle achieved cumulative sales of 10 billion KRW within a week of its release and is currently maintaining daily sales in the 1 billion KRW range. The main countries generating revenue are Thailand, France, Japan, Taiwan, and Germany, and the concurrent Steam users have consistently remained above 25,000. Although daily sales in Korea and the US have declined relatively quickly since the initial launch, it is difficult to make a definitive judgment, but Steam traffic remains steady and user feedback is positive, indicating a high likelihood of sustained performance.

Jung Ho-yoon, a researcher at Korea Investment & Securities, explained, "The continued success of Chronicle globally is very important. Last year, Com2uS's profitability deteriorated significantly due to the reflected losses of the newly consolidated subsidiary WYSIWYG Studios and a substantial increase in marketing expenses following the launch of Chronicle compared to the past."

He added, "If Chronicle maintains its current level of success and the upcoming new releases such as Zenonia, God of Fishing, and Mini Game Heaven, scheduled for release from the second quarter of this year, also perform well, profitability will turn around. Therefore, we estimate this year’s operating profit to be 44 billion KRW."

Furthermore, he stated, "Starting with Chronicle Global, the resumption of new releases will lead to a turnaround in the core business, and this year, WYSIWYG Studios will supply films and dramas, gradually improving the profitability of the media division as well. As of the end of last year’s fourth quarter, the company holds approximately 400 billion KRW in cash equivalents, and it plans to partially dispose of its 4.2% stake in SM, acquired at an average price of 65,000 KRW in the fourth quarter, through Kakao’s public tender offer. Considering the value of cash equivalents, the valuation burden is not significant."