[Click eStock] "Wemade, MirM Receives Chinese License... Target Price Up"

Mirae Asset Securities raised the target price for Wemade from 70,000 won to 90,000 won on the 26th, citing the success of Mir M in obtaining a foreign-invested game license in China. The investment rating of 'Buy' was also maintained.

Researcher Im Hee-seok stated, "Among the 40 foreign-invested game licenses issued by the Chinese National Press and Publication Administration on the 22nd, Wemade's Mir M (Chinese service name Mogwang Ssangyong) was included," adding, "The Chinese publisher for Mir M is currently undecided but is expected to be selected and announced soon."

He further noted, "With Mir M's success in obtaining the foreign-invested license, the possibility of Mir 4 receiving a license has also increased, and it is likely to be included in the next foreign-invested license issuance period." Game companies such as Netmarble, Nexon, and Smilegate, which succeeded in obtaining foreign-invested licenses, have also achieved consecutive license issuances.

Concerns remain due to new regulatory proposals. The regulations announced by the National Press and Publication Administration include prohibitions on business models (BM) such as daily login rewards, first-time charging, and consecutive charging bonuses; setting charging limits on user accounts; and banning elements that allow in-game item trading like auction houses.

Researcher Im emphasized, "The new regulations in the gaming industry have increased uncertainty about success, and modifications to existing BMs seem inevitable. However, considering the unique recognition of the Mir intellectual property (IP) in China, even if it adopts a BM with reduced monetization, its potential for success remains sufficient."

He added, "We expect Mir 4's performance to surpass that of Mir M, anticipating a ranking in the high teens within the top 10," and "Assuming daily average sales of 1.1 billion won in 2024 following Mir 4's release in China."

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