[Click eStock] Com2uS, Sufficient Upside Potential Despite New Release Delay

[Asia Economy Reporter Kwon Jaehee] Daishin Securities maintained a buy rating on game company Com2uS and set a target price of 220,000 KRW.

Com2uS recorded sales of 173.4 billion KRW and operating profit of 11.2 billion KRW in the fourth quarter of last year. This represents increases of 28.5% and 57.2%, respectively, compared to the same period last year.

Excluding the performance of Wysiwyg Studio, game sales amounted to 121.5 billion KRW, down 9.9% year-on-year. Operating profit also decreased by 55.1% during the same period to 11.7 billion KRW.

Game sales increased quarter-on-quarter due to year-end promotions of major games, but declined year-on-year due to the stabilized downward trend in sales of the existing "Summoners War: Sky Arena" and sluggish sales of the 2021 new release "Summoners War: Hundred Years' War." Additionally, the baseball lineup has shown growth every year since 2019.

However, marketing expenses of 13.9 billion KRW and labor costs of 35.2 billion KRW increased due to new business initiatives and the consolidation of Wysiwyg Studio.

It is evaluated that Com2uS has sufficient potential for stock price appreciation as it pursues business strategies to expand the blockchain ecosystem in the future.

Com2uS originally planned to globally launch "Summoners War: Chronicle" with P2E (Play to Earn) introduced in March, but the schedule was changed to a domestic release in Q2 and a global release in Q3. This is interpreted as a decision to update the P2E feature in March and to release it first domestically as a testbed to enhance global awareness through Hundred Years' War.

Also, the P2E game release lineup for this year was initially announced as four self-developed games (Summoners War: Chronicle, World of Zenonia, Fishing God: Crew, Golf Star), but two additional titles (Summoners War: Hundred Years' War, The Walking Dead: Identity) were added. Ultimately, except for the baseball lineup, all provide P2E services.

Lee Ji-eun, a researcher at Daishin Securities, analyzed, "Although additional revenue from P2E will be reflected once the business is concretized, the price-to-earnings ratio (PER) based on 2022 EPS is 15.9 times, undervalued compared to competitors, based on existing performance."

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