[Click eStock] "Com2uS Aims for Metaverse Centered on Economically Active Adults"

Q3 Earnings Below Consensus
Kiwoom Securities "Com2uS Target Price Raised from 170,000 KRW to 230,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Com2uS reported third-quarter earnings this year that fell short of market consensus. Nevertheless, Kiwoom Securities raised Com2uS's target stock price due to its association with the metaverse.

According to Kiwoom Securities on the 12th, Com2uS's third-quarter revenue this year was 113.1 billion KRW, down 11.82% year-on-year, and operating profit was 12.9 billion KRW, down 50.99% over the same period. These figures were 15.95% and 44.22% below the respective consensus estimates.

The reason for the underperformance in the third-quarter results was the sluggishness of existing games. The revenue contribution from Summoners War: Hundred Years' War significantly decreased, and there was no promotion for Summoners War: Sky Arena.

Nevertheless, Kiwoom Securities raised Com2uS's target stock price from 170,000 KRW to 230,000 KRW, maintaining a 'Buy' investment rating. The previous day's closing price was 168,200 KRW.

High marks were given to the new business model, the metaverse. Com2uS plans to launch the metaverse system called 'Com2Verse.' Unlike existing metaverses, it targets an older age group and plans to begin the initial phase through a virtual office. A prototype video is expected to be released in December, with entry into the Com2uS Group anticipated in the second half of next year.

The 'Play-to-Earn' (P2E) model will also be applied. P2E refers to a game structure where users earn money through the in-game ecosystem. First, the P2E model will be incorporated into Summoners War: Chronicle, scheduled for release next year. Kim Hak-jun, a researcher at Kiwoom Securities, explained, "Considering the global intellectual property (IP) influence and the global trend toward the P2E model, higher success potential is expected compared to before," adding, "Other new titles will also adopt the P2E model."

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