NH Investment & Securities evaluated on the 31st that the initial response to Com2uS's new game 'Pro Baseball RISING' is positive and analyzed that performance growth can be expected. The investment opinion 'Buy' and target price of 65,000 won were maintained. Com2uS's closing price on the last trading day was 45,950 won.
Earlier, Com2uS released 'Pro Baseball RISING' in Japan on the 26th. As of the 30th, the game ranked 2nd in Apple App Store downloads and 45th in revenue rankings. Research Institute An Jae-min noted, 'If it manages to settle within the top 20 in revenue rankings, the contribution to performance is expected to increase more than anticipated.'
Com2uS has not had successful new releases in recent years and has faced valuation discounts, but this is also expected to be resolved. This year's expected price-to-earnings ratio (PER) is only about 11.9 times.
Research Institute An said, 'The subsidiary WYSIWYG STUDIOS, which had been burdening Com2uS's consolidated performance until last year, is expected to turn profitable in the first half of this year due to the recent success of the drama 'Buried Hearts,' and in the second half, 'Mantis' and 'Salon De Homes' are also scheduled to air.'
Recently, the corporate value enhancement plan announced by Com2uS was also positively evaluated. Research Institute An stated, 'Com2uS has many assets including cash reserves, Kbank, and Devsisters, and due to poor profitability in recent years, the return on equity (ROE) has declined, resulting in a price-to-book ratio (PBR) of only 0.5 times,' and added, 'To improve this and increase shareholder returns, we decided to revise the shareholder return policy upward and consider stock buybacks and retirements.'
He further expressed expectations that 'this year, along with performance growth, the valuation that had been discounted will recover through measures to enhance corporate value.'