[Edaily Reporter Shin Ha-yeon ] On the 14th, NH INVESTMENT & SECURITIES assessed that Com2uS Corporation(078340)has reason to expect strong performance from its upcoming title “ZEUS CO., LTD.: God of Arrogance,” scheduled for release on the 26th, noting that the momentum from the new release has not yet been reflected in the stock price. The firm maintained its “Buy” rating and target price of 43,000 won.

Ahn Jae-min, an analyst at NH INVESTMENT & SECURITIES, stated, “Although the success rate of the company’s recent new titles has declined, ‘Zeus: God of Arrogance’ is considered one of the most anticipated domestic MMORPGs to be released this year.”

“ZEUS CO., LTD.: God of Hubris” is evaluated as a title that follows the classic formula of a massively multiplayer online role-playing game (MMORPG) while incorporating elements that set it apart from existing games. It features the “Artisan,” a specialized character focused on crafting and trading, as well as an AI mode and a 9,900-won membership plan.

NH INVESTMENT & SECURITIES estimated the revenue for “ZEUS CO., LTD.: God of Hubris” at 10.2 billion won for the third quarter of this year and 24.3 billion won for the fourth quarter. This translates to average daily revenue of 300 million won and 270 million won, respectively.

Analyst Ahn explained, “Considering that Netmarble Corporation’s ‘Sol: Enchant’—the most successful domestic MMORPG this year—recorded average daily revenue of 1.9 billion won in its first quarter, these figures are manageable.”

Com2uS Corporation’s second-quarter results also met market expectations. Second-quarter revenue totaled 157.0 billion won, down 15.0% year-over-year, while operating profit rose 420.7% to 7.2 billion won. Operating profit met the market consensus of 6.9 billion won.

The results were bolstered by growth in sports game revenue as the baseball season began. Second-quarter sports revenue reached 68.9 billion won, up 11.4% year-over-year and 7.9% quarter-over-quarter. The flagship title “Summoners War: Sky Arena” also continued to serve as a cash cow, driven by the momentum of its 12th anniversary.

However, non-operating income and expenses were weak. This was due to valuation losses resulting from a decline in the value of the company’s holdings in Kbank and SM Entertainment.

Analyst Ahn assessed that while Com2uS Corporation had previously suffered from weak operating profit due to the failure of several new games to gain traction and the expansion of its media and content businesses, the company is gradually entering a recovery phase as it restructures its subsidiaries.

He cited “refocusing on the gaming business and striking an appropriate balance between in-house development and publishing” and “downsizing the media and content business and reducing losses” as key investment points for Com2uS Corporation. However, he identified lowered expectations due to the failure of new titles to perform well as a risk factor.

Regarding the target price, he explained, “It was calculated by applying a target price-to-earnings ratio (PER) of 17 times to the 12-month forward earnings per share (EPS) of 2,552 won.”