[Click eStock] "Wemade, Preemptive Reflection of Mir4 and WEMIX Potential... Valuation Consideration Needed"

Samsung Securities Report

[Asia Economy Reporter Minji Lee] Samsung Securities expressed on the 4th that although the global traffic of Mir4 and the growth expectations for WEMIX are rising for Wemade, careful consideration of valuation is necessary as the stock price has surged rapidly so far.

Wemade's revenue in the third quarter was 63.3 billion KRW, down 8.1% from the previous quarter. Although Mir4 global sales were reflected for about a month, overall revenue fell short of consensus by 16.1% due to a decrease in domestic Mir4 and other game sales. Operating profit was 17.4 billion KRW, down 35.2% from the previous quarter, missing market expectations by 26.1%.

On August 26, Wemade launched Mir4 in over 170 countries worldwide using blockchain technology based on 'WEMIX'. The game attracted attention as a P2E (Play to Earn) model where the in-game currency, Black Iron, can be converted into cryptocurrency to earn real money, leading to a steady increase in traffic. Within about a month of launch, the number of servers surpassed 100, and as of the 2nd of this month, the number of servers increased to 186. Concurrent users also approached 1 million by the end of last month. Researcher Donghwan Oh of Samsung Securities said, “We should pay attention to the fact that all indicators such as traffic and sales have been rapidly increasing since last month,” adding, “Currently, the market capitalization of WEMIX is approaching 800 to 9,000 billion KRW.”

The company plans to make WEMIX a game-specialized blockchain open platform and a base currency. To this end, it will provide developers with open software development tools that allow game tokens and NFTs to be applied in games, and plans to have 100 games serviced on the WEMIX platform by the end of next year. Currently, games such as Yeolhyeol Gangho, Abyssrium, and Dark Eden are preparing for release through WEMIX. Researcher Oh explained, “We plan to generate revenue by charging fees on game coins traded on the WEMIX platform.”

Wemade's market capitalization surged sharply from 800 billion KRW in July to 6 trillion KRW currently after the global success of Mir4. The rapid stock price increase is analyzed as a result of the pre-reflection of Mir4's success and the potential of WEMIX as a blockchain game platform. Researcher Oh said, “The success of Mir4 is expected to further accelerate the combination of blockchain in the gaming industry,” adding, “Since it is difficult to accurately estimate the growth potential of Mir4 global and the WEMIX platform at present, careful consideration of appropriate valuation is necessary.”

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