[Click eStock] "DearU, Growth Expected Through Collaboration with TME"

Hanwha Investment & Securities predicted on the 31st that DearU's profits will increase through a strategic partnership with Tencent (TME).

Researcher Park Su-young of Hanwha Investment & Securities stated, "DearU has signed a strategic partnership and service contract with Tencent (TME)," and introduced, "Tencent is a mega group that occupies more than 70% of the Chinese music market." He added, "They own platforms such as QQ Music, Kugou Music, and Kuwo Music," and estimated, "The combined monthly active users (MAU) of the three apps is 500 million, with 120 million paid subscribers."

He continued, "The core of the agreement is to sell the 'Bubble' service not only for K-pop artists but also for local Chinese artists on the QQ Music platform," and analyzed, "DearU's entry into the Chinese market has been a source of anticipation among investors for nearly two years."

Researcher Park said, "Due to regional characteristics and various reasons, the business progress had been stagnant for a long time," and described the official announcement of the contract signing as "a welcome relief like rain in a drought." He explained, "The service launch is assumed to be in the third quarter, with an average MAU of about 3.42 million," and added, "As of last February, QQ Music's MAU was 342.38 million, and this assumes a 1% conversion rate." He further stated, "Among DearU's approximately 2 million MAU, the number of Chinese users is estimated to be about 440,000. Considering that the iOS usage rate in China is 23% and assuming the inclusion of local artists and influencers upon the service launch in China, the expected MAU is 3.8 million."

He estimated, "The cost is expected to be minimal," and forecasted, "An additional profit of about 8.4 billion KRW could be generated in the second half of next year."

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