[Click eStock] "DearU, Rapidly Growing Subscribers in China"

Kiwoom Securities analyzed on the 11th that DearU is rapidly increasing its subscribers in China. The investment opinion 'Buy' and the target price of 60,000 KRW were maintained.

DearU recorded sales of 19.1 billion KRW and an operating profit of 6.7 billion KRW, increasing by 64% and 95.9% respectively compared to the same period last year. Namsoo Lee, a researcher at Kiwoom Securities, emphasized, "The average number of subscriptions in the second quarter was 2.25 million, a 10% increase from 2.05 million in the previous quarter," adding, "The non-organic growth toward Universe, which started mid-February, continued in the second quarter with a significant increase in IP from 80 agencies, 152 teams, and 469 artists in the first quarter to 107 agencies, 174 teams, and 523 artists in the second quarter."

He particularly analyzed that subscriber acquisition in China is rapidly increasing. He said, "In the second quarter of last year, the proportion of Chinese subscribers reached 30%, surpassing Korea (26%), and expanded to 38% in the first quarter of this year," adding, "Although the Chinese market share slightly decreased to 35% in the second quarter, this is due to the entry of Universe-related intellectual property (IP) with a large domestic fandom, so it is not considered a significant decline."

He stated, "The announcement of the resumption of Korea-China group tours also raises expectations for expanded cultural exchanges with China in the future," and evaluated, "The business started in China from the early stages with the iOS version, and the Android version was launched earlier this year."

He emphasized, "Since 2017, solo performances by K-pop artists have been impossible, but despite this, K-POP has made progress in China," adding, "Subscribers have continued to increase after the world tours of major IPs, and the bubble subscription of the Chinese fandom meeting through offline concerts is the most rational fan logic."

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