[Click eStock] "Com2uS, New Release 'Chronicle' Requires Sustainability Check... Target Price ↓"

[Asia Economy Reporter Myunghwan Lee] Kiwoom Securities announced on the 23rd that it maintains a buy rating on Com2uS but has lowered the target price from 150,000 KRW to 100,000 KRW. The company's new mobile game, "Summoners War: Chronicle," has received mixed user reactions, indicating uncertainty about its sustainability.

Kiwoom Securities evaluated that Chronicle, released by Com2uS on the 16th, has elicited varying user preferences regarding game graphic quality, impact feel, and manual dungeon play. They interpreted this as showing different points of contact between users who have experienced the original Summoners War and those who have not.

Kiwoom Securities' analysis also noted that it is difficult to clearly confirm positive factors regarding the fun of the content and differentiation compared to existing MMORPGs (Massively Multiplayer Online Role-Playing Games), which are the most important elements for the sustainability of Chronicle's user traffic. Therefore, they pointed out that further verification of Chronicle's sustainability is necessary. Kiwoom Securities projected Chronicle's average daily revenue for this year and next year at 350 million KRW and 360 million KRW, respectively.

Kiwoom Securities identified the key point for raising Com2uS's valuation as securing mid- to long-term earnings growth through sustained revenue from new releases. However, given the mixed user feedback following Chronicle's launch, they noted that the weight of future new releases is relatively lower compared to Chronicle. They explained that further upward revision of the valuation is unlikely.

Kiwoom Securities assessed Com2uS's upside risk as the speed of performance recovery in the media content business sector and synergy effects with major businesses. They judged that the competitiveness of the metaverse business requires feedback from a broad user base, making it difficult to assign additional valuation at this time. However, they forecast that if service advancement is achieved through future solution improvements, it could act as a factor for valuation increase.

Researcher Jingu Kim of Kiwoom Securities advised, "Investors need to check the sustainability of Chronicle and the resulting earnings volatility to adjust their investment weight."

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