[Click eStock] "DevSisters, Quantum Jump with China Expansion... Target Price Up"

Shinhan Investment Corp. analyzed on the 14th that Devsisters will make a quantum jump through its entry into China. Accordingly, it raised the target stock price to 100,000 KRW.

Researcher Kang Seok-oh of Shinhan Investment Corp. stated in a report on the same day, “‘Cookie Run: Kingdom,’ which received a foreign-invested game license in China on the 20th of last month, will be jointly published by Tencent and Changyou Games,” and “Recently licensed games have seen a much faster period from CBT, pre-registration, to launch, and after the publishing contract was announced in September 2021, localization work likely proceeded first.”

Researcher Kang Seok-oh added, “Smilegate’s ‘Lost Ark’ was also launched about 100 days after receiving the foreign-invested game license,” and “‘Cookie Run: Kingdom,’ which showed broad appeal regardless of region or user, is expected to achieve great success in China, where mobile casual games have become popular.”

He estimated the performance of ‘Cookie Run: Kingdom’ in China at an average daily sales of around 1 billion KRW. Since it recorded daily sales of 1.2 billion KRW in the first quarter in Korea alone, considering the size of the Chinese market, this is not considered an aggressive figure.

He said, “Assuming a 25% RS (revenue share) received from the publisher, the net sales recognized by the company for one year after launch will be about 100 billion KRW,” and “‘Cookie Run: OvenSmash’ is expected to be released in June, with an estimated average daily sales of 500 million KRW this year. It will be sequentially released on PC, mobile, and console platforms, and the business model centered on skin items and season passes is expected to generate more stable revenue compared to typical mobile games.”

He continued, “With an increasing proportion of overseas sales and several high-quality casual new titles in preparation, not only a quantum jump in performance but also a multiple re-rating can be expected accordingly.”