[Click eStock] "Com2uS, Establishing Growth Foundation with New Release... Target Price Up"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment upgraded its investment opinion on Com2uS to "Buy" on the 15th and raised the target price by 66% from the previous level to 200,000 KRW. This decision is based on the expectation of performance growth with the release of "Summoners War: Hundred Years' War" in April.

Despite market concerns in the fourth quarter of last year, Com2uS posted solid results. Revenue increased by 11.2% compared to the same period last year, reaching 134.8 billion KRW. This was due to various year-end promotions for "Summoners War."

However, operating profit decreased by 5.8% quarter-on-quarter to 24.8 billion KRW due to increased personnel expenses from the effects of mergers and acquisitions. Seungtaek Hwang, a researcher at Hana Financial Investment, said, "It should be noted that costs have increased due to aggressive new game strategies and mergers and acquisitions for mid- to long-term growth since last year."

Com2uS plans to release Summoners War: Hundred Years' War on April 29. This is the segment the market has been anticipating as a foundation for growth based on new game performance. Since the release of Summoners War in 2014, Com2uS's annual revenue has continuously declined after peaking in 2016.

Summoners War: Hundred Years' War is a real-time strategy game different from its predecessor, and it secured 2 million pre-registrations within about 10 days after pre-registration began on January 28. Through aggressive marketing and rapid e-sports adaptation after release, it is expected to achieve meaningful results. Researcher Hwang said, "Although revenue growth exceeded 8% last year, it was due to the operation of Summoners War and did not guarantee mid- to long-term growth. With the new release, growth is expected to exceed 20% this year."

This year, the performance of Summoners War: Hundred Years' War is expected to drive earnings. The meaningful results of "Buddy Crush," released this month, are also positive. Com2uS's operational know-how with Summoners War is worth noting. Researcher Hwang explained, "Since its release in 2014, revenue has only declined by 0.8% compared to the peak in 2016. Concerns that new games based on the Summoners War IP might cannibalize existing products can be minimized by Com2uS's operational expertise."

This content was produced with the assistance of AI translation services.