Kiwoom Securities said on the 4th that Com2uS Holdings(063080) is expected to rebound in the second half, supported by hits and improved results across all business areas, including games, platforms, and investments in affiliates.
Kim Hak-jun, an analyst at Kiwoom Securities, said, "Com2uS Holdings is composed of three revenue areas (game business, platform business, and investment gains from affiliates), and all three have been rebounding recently."
Kim said, "The game business rebounded on the back of the stable performance of 'Star Sailor,' released on June 30, and it is estimated that the business institutional sector, which had been in the red, has returned to the break-even point (BEP)."
Kim added, "The platform business also saw an increase in HYBE commission revenue thanks to Com2uS' Zeus reaching No. 1 and the expansion of the client pool," and analyzed, "Investment gains from affiliates are also expected to improve profitability as Zeus's performance reflects our estimates of 960 million won in average daily revenue and net profit."
The potential for margin improvement from a more efficient expense structure was also rated highly. Kim said, "In the expense institutional sector, we completed efficiency measures for personnel and marketing costs, shifting to a structure that allows operating leverage from game hits," and predicted, "Additionally, with a higher share of external payment networks, commission rates are declining, so margins should improve as sales increase."
Kim forecast that this year's sales on a consolidation basis will be 88.5 billion won, down 10.7% from a year earlier, and the operating loss will continue at 5.1 billion won. However, the cumulative first-half loss of 15 billion won is expected to see a sharp improvement in the second half.
Kim said, "The new title 'Ares' is set for a global launch this month, and with cloud platform sales expanding, the company will lay the groundwork to fully return to an annual profit next year."