[Featured Stock] DearU, Entering China, Surges Over 5%

DearU's stock is showing strong performance after partnering with Tencent Music Entertainment Group (TME), the largest music platform in China.

As of 9:17 AM on the 29th, DearU was trading at 31,300 KRW, up 1,500 KRW (5.03%) from the previous trading day.

DearU is rapidly growing in the fandom platform market, centered around its 'Bubble' service. Notably, it signed a strategic partnership and service agreement with TME the day before. The launch of the new local platform is expected around the first quarter of next year, and royalty revenue amounting to approximately 8-10% of total sales is expected to be reflected in consolidated earnings.

On this day, Yuanta Securities maintained a buy rating and a target price of 40,000 KRW for DearU, stating that "growth momentum has restarted."

Researcher Lee Hwan-wook of Yuanta Securities said, "Currently, since Google Store usage is banned in China, access to the Bubble service is limited for the 77% of Android users. If the Bubble service is provided through Tencent's app market, a simple calculation suggests that more than 900,000 K-pop intellectual property (IP) subscribers could newly join."