[Click eStock] "WI Enters Full Growth Phase with IP Business Including Pengsu"
[Asia Economy Reporter Hyunseok Yoo] Hyundai Motor Securities analyzed on the 11th that WI is expected to see performance growth through intellectual property (IP) business such as Pengsoo. No investment opinion or target price was presented.
Researcher Seongman Yoo of Hyundai Motor Securities stated, "WI is the No. 1 domestic company related to intellectual property (IP) business and a specialized company in character and brand licensing," adding, "Last year's performance turned around, and from this year it has entered a full-scale profit growth phase."
Researcher Yoo said, "Since 2016, WI acquired 'WithMobile,' which operated the Kakao Friends licensing business, and recently started an IP business related to German Mercedes-Benz," emphasizing, "On the 19th of last month, WI signed about 20 licensing contracts including mobile accessories and small home appliances for 'Pengsoo' (EBS Giant Peng TV), the most popular domestic character. Currently, additional IP contracts related to top domestic K-POP artists, famous characters, and products are underway, so the lineup of licensed IPs is expected to diversify."
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In particular, Researcher Yoo expects WI to focus solely on the licensing IP business in the future, anticipating a significant increase in performance this year. Hyundai Motor Securities forecasted WI's sales and operating profit this year to be 52 billion KRW and 6.2 billion KRW, respectively, representing increases of 104.2% and 577.8% compared to the previous year. He stated, "Recently, WI's stock price has undergone a significant correction due to domestic and international stock market instability caused by the coronavirus, but simultaneous increases in performance and stock price are expected due to increased sales of major licensed IP products," adding, "Going forward, WI plans to hold various global IPs and expand into the U.S., Europe, Japan, and China. The existing semiconductor post-process business has been completely wound down, and the company plans to focus solely on the licensing IP business."
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