[Click eStock] "Webzen, Growth Expected from New Release 'Jeonmin Gijeok 2' Success"

NH Investment & Securities "Target Price Raised from 51,000 KRW to 60,000 KRW"
'Jeonmin Gijeok 2' Shows Strong Performance in Chinese Market... Proving the Value of the Mu IP

[Asia Economy Reporter Gong Byung-sun] Webzen's new title 'Jeonmin Gijeok 2' is drawing attention as a potential new growth platform. The intellectual property (IP) of the Mu series owned by Webzen appears to be consistently delivering meaningful results in the Chinese market.

On the 12th, NH Investment & Securities raised Webzen's target stock price from the previous 51,000 KRW to 60,000 KRW, maintaining a 'Buy' investment rating. NH Investment & Securities explained that the upward revision of the target price was necessary as they raised this year's earnings estimates reflecting the performance of Jeonmin Gijeok 2. The target price was calculated using the Residual Income Model (RIM), and the current stock price has an upside potential of about 24% compared to the target price. The target price corresponds to approximately 17.2 times this year's expected earnings per share (EPS).

Jeonmin Gijeok 2, released on the 9th by Tencent in China, is showing favorable performance in the Chinese market. As of 8 a.m. the previous day, Jeonmin Gijeok 2 ranked first in downloads and fifth in revenue on the Chinese Apple App Store. If the current ranking is maintained, daily revenue is expected to reach 3 billion KRW.

According to Jaemin Ahn, a researcher at NH Investment & Securities, the Mu IP owned by Webzen once again played a significant role. Following last year's 'Mu: Archangel,' the in-house developed 'R2M,' and 'Yongyo Daecheon-sa' released in China this January, the new title marks the fourth consecutive success. Researcher Ahn evaluated this as “a reaffirmation of the value of the Mu IP.” However, excessive dependence on the Mu IP could become an issue.

Webzen's earnings outlook has improved. Researcher Ahn stated, “Webzen's sales this year are expected to reach 359.6 billion KRW, a 22.3% increase compared to the same period last year, and operating profit is projected to rise 43.3% year-on-year to 155.1 billion KRW,” adding, “Growth drivers will continue in the second half with the release of additional games utilizing the Mu IP.”

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