[Click eStock] "DearU, Expected to Secure Potential Fandom in China"

Meritz Securities forecasted improved performance for DearU on the 7th as it signed a strategic partnership and service agreement with Tencent Music Entertainment Group (TME). The target stock price was raised from 31,000 KRW to 48,000 KRW.

Kim Min-young, a researcher at Meritz Securities, explained, "TME has 560 million users" and added, "Korean artists, Chinese artists, and influencers will join the service." She continued, "Since the service will be launched within TME's apps rather than as a separate app, subscribers are expected to increase faster than in Japan and the United States" and emphasized, "this is the most effective strategy to overcome concerns about stagnation and decline in DearU subscribers."

Researcher Kim analyzed, "From next year, we expect expansion of IP and subscriber numbers through regional growth focused on Japan, the United States, and China" and "the Bubble service, being a 100% subscription-based platform, can establish itself as a significant service within TME."

He expressed expectations, saying, "Royalty revenue generated from the Chinese Bubble service is expected to reach 9.3 billion KRW next year," and "we will fully enjoy the anticipation of the Chinese market opening."

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