![[빅데이터] ‘WeMade’, which soared by 42% in a week, exposed a total of 10 issues… Will virtual currency ‘Wemix’ be revived?](https://i0.wp.com/www.infostockdaily.co.kr/news/thumbnail/202302/189524_171290_497_v150.jpg?fit=%2C "[빅데이터] ‘WeMade’, which soared by 42% in a week, exposed a total of 10 issues… Will virtual currency ‘Wemix’ be revived?")
Stock price plummeted by Wemix, soared by Wemix
Still a conservative brokerage company…Wemade’s share price exceeds the brokerage target price
[인포스탁데일리=안호현 전문기자] WeMade’s stock price soared by 42% over the past week (February 14th to 20th). It was from the news that WeMade’s virtual currency ‘Wemix’ was recently listed on overseas exchanges such as India.
<인포스탁 빅데이터 리서치>According to WeMade, in the past week, if a total of 10 market issues were discussed, ▲ 4 stock issues, 3 disclosures, and 3 investment opinions, it ranked high in market exposure.
◇ “The stock price that fell sharply with Wemix, soared with Wemix”
WeMade’s share price movement began on the 14th when the news of Wemix’s re-listing was announced. Wemix faced a crisis at the end of last year when transaction support was terminated from the four major exchanges in Korea.
After the end of transaction support, Wemade’s share price fell to the low 30,000 won range. The reversal began when Wemix was re-listed on the domestic won exchange ‘Coinone’ on the 16th. In addition, as WeMade withdrew all of the appeals against the 4 major exchanges to suspend the provisional injunction, the possibility of re-listing of the remaining exchanges is being discussed.
Also, on the 20th, WeMade announced that it would be listed on India’s largest exchange ‘BitBNS’. In addition, it was listed on Brazil’s largest virtual asset exchange ‘Mercado Bitcoin’, North American exchange ‘Bitmart’, and domestic exchange ‘Gdac’.
It is analyzed that the news that Wemix will be listed on domestic and foreign virtual currency exchanges was effective in the rapid rise of WeMade’s stock price. All of these issues have occurred over the past week.
Looking at stock price trends by date ▲ Wemade stock price rose 2.55% on February 14 on the news of Wemix re-listing ▲ Wemade 22-year performance announcement (turn to deficit) ▲ Cash dividend decision announcement (750 won per share) ▲ Mirae Asset investment on February 16 Changed opinions from Neutral to Trading Buy ▲ Changed investment opinion from Shinhan Investment & Securities to Neutral from Buy on February 16 ▲ Increased target price of Daol Investment & Securities from KRW 48,000 to KRW 50,000 ▲ Record upper limit on Wemade’s share price following Coinone’s decision to re-list on Wemix ▲ On February 20, as news of Wemix and Bitbns listing on India’s largest virtual asset exchange became known, stock prices also moved together.
If you look closely at the major issues that occurred during the week, the news announced or announced by the company was received as good news by investors. In a short period of time, news about earnings, the re-listing of Wemix, and the main business of games continued.
◇ Still a conservative brokerage… Wemade’s stock price exceeds the brokerage target price
The perspective of securities firms was conservative, unlike the skyrocketing stock price. It also changed its rating from Buy to Neutral or lowered its target price.
One place that raised the target price was Daol Investment & Securities, and the proposed target price was also 50,000 won, which is about 9% lower than the closing price of Wemade, 54,800 won, on the 16th when the brokerage report was published.
Hana Securities analyzed that 4Q sales were KRW 110.3 billion (YoY -13%, QoQ 2%) and operating loss was KRW 24.4 billion (YoY positive, QoQ negative), which is in line with the consensus. In addition, thanks to the launch of new titles including Mir M Global, annual sales in 2023 were estimated at KRW 704.4 billion (+53.6% YoY).
Hana Securities maintained its Buy rating with a target price of KRW 45,000, saying, “As it has many upside projects whose contribution timing is uncertain, such as the blockchain business and IP litigation, the premium compared to competitors is justified.”
However, compared to the closing price of KRW42,200 on February 15, the day before the report was published, the upside potential is only about 6.2%.
Mirae Asset Securities analyzed that profitability is expected to improve after the release of ‘Nightcrow’, but lowered the target price from KRW 51,000 to KRW 50,000, citing the downturn in sales of existing major games and uncertainty in the box office of new games. We upgraded our investment rating from Neutral to Trading Buy (expected absolute returns of 10% or more over the next 12 months).
Shinhan Securities downgraded its investment rating to Neutral without presenting a target price. Shinhan Securities predicted, “The speed of onboarding of new games to the Wemix platform is slower than the company’s goal, and even if new games scheduled to be released this year contribute, it will record an annual loss.” In addition, he explained, “As the size of the deficit has grown, it is necessary to respond to investments according to the turnaround time.”
Daol Investment & Securities, which showed a relatively positive outlook, cited “an attractive valuation considering the possibility of issuing a foreign investment in China, the revitalization of the cryptocurrency market, and expectations of a turnaround in operating profit in 2Q if the new game is successful” as positive factors.
However, it should also be kept in mind that the intensity of competition in domestic mobile MMORPG genre games has increased compared to last year. Daol Investment & Securities raised its target price for WeMade from KRW 48,000 to KRW 50,000.
Hana Securities, Mirae Asset, Shinhan Securities, and Daol Investment & Securities all published reports on the 16th. Affected by the issue of Wemix being relisted on Coinone on the same day, WeMade’s stock price reached the upper limit.
However, even taking this into account, the upside potential between the February 13 closing price of KRW41,250 and the brokerage target was only about 9-23%. As of February 20, WeMade’s closing price was W58,500, exceeding the brokerage target by about 17-30%.
Reporter Ahn Ho-hyun vicahh@infostock.co.kr
Copyright © Infostock Daily Unauthorized reproduction and redistribution prohibited
