Share price 50,000 won → 13,000 won… “Now I have more cash than market capitalization”

At one time, the share price exceeded 50,000 won, but it is barely keeping in the early 10,000 won range.

This event is Webzen. According to the Korea Exchange on the 31st메이저사이트, it closed at 13,800 won on the 28th after recording the intraday high of 53,000 won on April 9, 2021. If you bought the stock at the peak two years and three months ago, the loss rate is 72.56%. On the 26th, it fell to 13,000 won, a new 52-week low. The securities industry sees the lack of new games and slowing performance as factors for the decline.

First generation game company… “More than 3 new titles released in the second half”Founded in 2000, Webzen is a first-generation game company celebrating its 23rd anniversary this year. It has ‘Mu’ and ‘ R2’ , which are popular on PC and mobile game platforms. Currently, he is working hard on developing three or more new games, including MMORPG (multiplayer role-playing game) and subculture game (mania target game/collective RPG ). In the game publishing sector, we are continuing development and cooperation with partners in China and Japan. What will be the business plan for the second half? On the 31st, a person from Webzen said, “We will release more than three new games,” and replied, “It is not our own game development, but a business structure in which we publish what we made with our partners.” Currently, the games released on the market are ‘Mu Monarch’ and ‘Ragnadol’. It is also developing a subculture game targeting Japan with the goal of releasing it next year. As for future technology businesses such as blockchain and AI (artificial intelligence) businesses, it is in a position to jump in based on marketability.Performance is stable. After recording 176 billion won in sales and 51.7 billion won in operating profit on a consolidated basis in 2019, it recorded sales of 242.1 billion won and operating profit of 83 billion won last year. In three years, they grew by 37.56% and 60.54%, respectively. The operating margin last year was 34.28%, and the year-end dividend was 370 won. As of the first quarter, cash and cash equivalents stood at 500 billion won. It is 17.7 billion won more than the market cap (482.3 billion won) on the 30th. Real estate assets are 45 billion won.

“Undervalued than asset value… Time to buy from a long-term perspectiveThe total number of shares is 34,950,884, and the largest shareholder is Kim Byeong-gwan, former chairman of the board of directors, and two others holding 27.80% (9,717,662 shares). China Fungame International Limited holds 20.45% (7,148,252 shares) as the second largest shareholder. Treasury shares are high at 15.69% (5,484,069 shares).Oh Dong-hwan, a researcher at Samsung Securities, predicted, “The second quarter sales will be KRW 41.9 billion (down 11.8% from the previous quarter) and operating profit will be KRW 6.7 billion (down 31.7%), 24.1% below market expectations.” He added, “As expectations for short-term earnings were not high, the impact on stock prices will be limited.” He also explained, “It is worth looking forward to the box office success of ‘Mu Monarch’ developed by Kingnet in China.”“Considering that we are generating operating profit from our existing games and that we expect an earnings rebound with the release of new titles in the second half of the year, the current share price is excessively undervalued,” he judged. In particular , he insisted, “It is the right time to invest from a long-term perspective, as the market capitalization is less than the asset value (cash and financial assets), and new IP (intellectual property) and self-developed works based on Mu IP are scheduled to be released from next year.” This year’s performance was expected to be somewhat sluggish with sales of 191 billion won and operating profit of 36 billion won.

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