"A Hit After 12 Years... Com2uS Target Price Raised" [Click eStock]

Shinhan Securities Raises Target Price to
KRW 53,000 from KRW 38,000

Shinhan Securities maintained its Buy rating on Com2uS on November 4 and raised its target price to KRW 53,000 from KRW 38,000.

“The hit success of ‘Zeus’ has secured a new source of revenue, while sports growth and cost efficiencies support the earnings base,” said Ko Junhyeok, an analyst at Shinhan Securities. “If the performance of next year’s new releases is confirmed, the company could be re-rated in addition to seeing an earnings improvement.”

Ko forecast Com2uS’s results for next year at KRW 858.6 billion in operating profit and KRW 90.2 billion in operating profit. These figures represent increases of 14.9% and 53.4%, respectively, from the previous year. The forecast is based on the success of Com2uS’s new massively multiplayer online role-playing game (MMORPG), “Zeus.” He said, “The success of Zeus is expected to continue in the second quarter of this year,” adding, “Average daily revenue is expected to reach KRW 1.8 billion in the first quarter after launch and KRW 137.5 billion in the second quarter.”

He also said that growth in baseball games warrants attention. Ko projected that sports revenue would grow 13.5% next year, alongside the popularity of the Korea Baseball Organization (KBO).

In addition to its existing titles, Com2uS plans to release a variety of new games next year. “New releases based on well-known intellectual properties, including ‘Tougen Anki,’ ‘Destiny Child,’ ‘Gachiakuta’ and ‘Omniscient Reader’s Viewpoint,’ are scheduled,” he said. “This will be an opportunity to demonstrate earnings growth and development capabilities. If the success of in-house developed titles builds on the publishing performance demonstrated by Zeus, Com2uS could also be recognized for its ability to expand across genres, regions and platforms, paving the way for a re-rating.”

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