[Click eStock] DearU Contributes to Revenue Growth with Expansion into China... Target Price Raised

Kiwoom Securities on the 6th positively evaluated the effect of Bubble Service's entry into the Chinese market regarding DearU and raised the target stock price to 55,000 KRW. The investment opinion was maintained as 'Buy.'

Namsoo Lee, a researcher at Kiwoom Securities, stated in a report released that day, "With the launch of the Chinese service in the second quarter of next year, we expect royalty sales of 11.8 billion KRW in 2025," and analyzed, "In 2026, we can expect further expansion of TME subscription rates for K-pop, stabilization of Bubble Japan, and the entry of global stars into the U.S. Bubble market." DearU is a global fan communication platform operating the fan platform Bubble.

Researcher Namsoo Lee positively evaluated DearU's launch of the Bubble service locally in China through business cooperation with Tencent Music Entertainment Group (TME).

He said, "Since fandom business in China, the largest potential market for K-pop, is realized through the Bubble service, we believe significant progress will be made in the artist contracts and collaboration relationships, which have been pointed out as the biggest weakness so far," and added, "Now that they are directly targeting the Chinese market, they will follow the preceding logic of entry for success."

He continued, "There are always potential risks in new businesses. This can also be confirmed by the sluggish initial performance of Bubble in Japan and the U.S., which had raised expectations. However, this entry into China will unfold differently from other global regions."

He also pointed out that from the start, the platform installation and program accessibility differ from the new applications in Japan and the U.S. He said, "The burden of the most important membership registration and installation is greatly reduced. And Bubble focuses solely on communication," adding, "This is what differentiates Bubble from other fandom platforms in Korea."

Researcher Namsoo Lee stated, "The K-pop artist Bubble will serve as a catalyst for the opening of Chinese stars' Bubbles, thereby expanding the potential size."

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