On the 14th, NH Investment & Securities noted that Com2uS's new release launched in Japan did not meet market expectations, but it is anticipated that other new releases in the latter half of the year will show improvement in operating profit. However, due to the impact of lowered earnings estimates, the target stock price has been revised down from 65,000 won to 56,000 won, while maintaining the investment opinion of 'buy.' The closing price for Com2uS on the previous trading day was 39,400 won.
In the first quarter of this year, Com2uS recorded revenues and operating profits of 168 billion won and 1.7 billion won, representing increases of 6.5% and 44.3% year-on-year, respectively. The operating profit exceeded the securities market forecast of a deficit of 600 million won.
Analyst Ahn Jae-min from NH Investment & Securities explained, "The improvement in the deficit of the subsidiary's media business also led to favorable results in consolidated operating profit."
Sales from the sports genre recorded 51.6 billion won, an increase of 21.3% compared to the previous year, showing significant growth even in the off-season of the first quarter, and substantial growth is expected this year alongside the popularity of domestic professional baseball. Marketing expenses were 18.2 billion won, a 25.3% increase from the same period last year, but the proportion relative to sales is 14%, which is stable.
Analyst Ahn pointed out that the ranking of 'Professional Baseball RISING,' which was released in Japan, has fallen short of initial expectations. He stated, "Professional Baseball RISING, released on March 26, initially reached the 38th rank in the Japanese Apple App Store revenue rankings, but has since fallen to 69th place," adding, "Considering the aspects that fell short of initial expectations, we have lowered the earnings estimates and target stock price."
However, it is expected that performance will improve in the latter half of the year. Analyst Ahn said, "Com2uS's two major intellectual properties (IPs), 'Summoners War: Arena of Valor' and the baseball game, are continuing their favorable growth, and the anticipated release of 'The Starlight' in the latter half of the year is also expected to improve operating profit."