Com2uS Holdings
The author is an analyst for NH Investment & Securities. He can be reached at jaemin.ahn@nhqv.com -- Ed.
Having overhauled its game business strategy to center on game publishing, Com2uS Holdings is scheduled to release three new games (Zenonia: Chronobreak, Project HoL, and Sangokushi Eternal). Earnings are also forecast to improve at subsidiaries Com2uS and Coinone.
Three new games set to be released from May
Maintaining a Hold rating, we raise our TP on Com2uS Holdings from W45,000 to W49,000. As the schedule of new game launches has been disclosed, we now reflect the new titles in our earnings estimates for 2023 and onwards. We also reflect a rise in NP estimates for consolidated subsidiary Com2uS.
In addition to the firm’s most anticipated title of 2023 (Zenonia: Chronobreak (MMORPG, June)), Sangokushi Eternal (collection/strategy RPG, May) and Project HoL (collection/idle RPG, August) are on track for release, and related expectations are forecast to begin climbing.
Com2uS Holdings is transforming into a firm focusing on game publishing and blockchain businesses. At the game business, game development has moved to subsidiary Com2uS, alongside the unification of other previously overlapping business with Com2uS.
However, as large-scale marketing costs are planned to be executed ahead of the launch of Zenonia: Chronobreak, 2Q23 will likely bring a turn to loss.
1Q23 review: OP tops expectations
Com2uS Holdings posted consolidated 1Q23 sales of W36.4bn (+51.3% y-y, +16.8% q-q) and OP of W7.1bn (TTP y-y, TTP q-q), with OP beating both our estimated operating loss of W3.1bn and the consensus operating loss of W9.5bn. As a holdings company, Com2uS Holdings reflects the NP of subsidiaries in its earnings, and at subsidiary Com2uS, net income turned to profit on stake sales of SM Entertainment.