[Click eStock] Com2uS, Chronicle Success "Fundamentals and Momentum Both Strong"

by Lee Seonae

Published 18 Apr.2023 07:49(KST)

Daishin Securities maintained its buy rating on Com2us on the 18th and raised the target price by 5.5% from 90,000 won to 95,000 won. This adjustment reflects the upward revision of earnings estimates following the success of the new title 'Chronicle.'

[Click eStock] Com2uS, Chronicle Success "Fundamentals and Momentum Both Strong"

Lee Ji-eun, a researcher at Daishin Securities, stated, "'Summoners War: Chronicle' is estimated to have recorded daily sales of 1 billion won on average for about 20 days after its release," adding, "Considering the market's very low expectations, its success is surprising." She continued, "The MMORPG genre tends to record high sales initially and then sharply decline," but noted, "It is now important to see if it can maintain steady sales and become a second 'Sky Arena.' Since Chronicle has a low frequency of content updates, the rate of sales decline is expected to be gradual." She particularly pointed out that current traffic indicators are also favorable, suggesting that sales are likely to rebound with future content updates.

Chronicle's earnings are expected to be fully reflected starting from the second quarter. She said, "Due to increased marketing expenses from launching the new title, first-quarter earnings are expected to be weak," adding, "From the second quarter, 'Sky Arena,' Com2us Pro Baseball lineup, and others will enter their peak season, and with the positive impact of Chronicle, earnings are expected to improve."

Accordingly, she estimated Com2us's first-quarter sales to increase by 36% year-on-year to 180.8 billion won. Operating losses of 5.6 billion won are expected during the same period. The researcher said, "The new title 'Zenonia,' scheduled for release in June, will be a momentum driver for Com2us's earnings," adding, "Although MMORPG competitors are scheduled to launch in the second quarter, Zenonia's strengths, such as large-scale server battles and invasion content, raise expectations for its success."