[Click e Stocks] "Com2us Holdings, Earnings Forecast Downgraded"... Target Price Down 38%

[Asia Economy Reporter Ji Yeon-jin] Ebest Investment & Securities announced on the 17th that it has significantly lowered its earnings forecast for Com2uS Holdings after the company's first-quarter results this year fell far below expectations, cutting the target stock price by 38% from 124,000 KRW to 77,000 KRW. However, it maintained a buy rating, judging that the long-term potential of the blockchain business remains valid.

Com2uS Holdings reported operating revenue of 24.1 billion KRW in the first quarter of this year, a sharp 29% increase compared to the previous quarter, but recorded an operating loss of 3.2 billion KRW, turning to a deficit. This was due to a significant deterioration in the performance of its subsidiary Com2uS, which posted results below expectations as the media business segment, including Wysiwyg Studios, underperformed.

However, the potential of the blockchain business remains valid, including P2E games where users can earn money while playing and the operation of the blockchain platform C2X ecosystem (C2X token, C2X Wallet, digital asset exchange, etc.).

The company has released a total of nine P2E games, eight of which were launched or are scheduled to launch this year, with the remaining one set to launch in the first quarter of next year. Researcher Seong Jong-hwa of Ebest Investment & Securities said, "P2E games require various experiments and feedback over the mid to long term, so expectations for a breakthrough revenue contribution in the short term should not be too high," adding, "It is advisable to continuously monitor and review the digital asset exchange business’s growth process over the mid to long term rather than expecting immediate remarkable results."

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