[빅데이터] ‘WeMade’, which rose 42% in a week, highlighted a total of 10 issues… Will ‘Wemix’ virtual currency be revived?

Wemix’s stock price plummeted, and Wemix soared
Still a conservative brokerage firm … Wemade share price is above brokerage target price

[인포스탁데일리=안호현 전문기자] WeMade’s stock price increased by 42% over the past week (February 14th to 20th). From the news that WeMade’s virtual currency ‘Wemix’ was recently listed on foreign exchanges like India.

According to WeMade, during the last week, if a total of 10 market issues were discussed, ▲ 4 stock issues, 3 disclosures, and 3 investment opinions, it was high in market exposure.

Wemade stock price trend and sector issue exposure frequency. Source = Infostock Research

◇ “The stock price dropped sharply with Wemix, then soared with Wemix”

WeMade’s share price movement started on the 14th when the news of Wemix’s relisting was announced. Wemix faced a crisis at the end of last year when transaction support stopped from the four major exchanges in Korea.

After the end of the transaction support, Wemade’s share price fell to the low range of 30,000 won. The reversal began when Wemix was re-listed on the domestic exchange ‘Coinone’ on the 16th. Additionally, as WeMade withdraws all appeals against the 4 major exchanges to stay the temporary injunction, the possibility of re-listing the remaining exchanges is being discussed.

Information about WEMIX KRW market transaction support.  Source = Coinone Website
Information about WEMIX KRW market transaction support. Source = Coinone Website

Also, on the 20th, WeMade announced that it would be listed on India’s largest exchange ‘BitBNS’. In addition, it was listed on the largest Brazilian virtual asset exchange ‘Mercado Bitcoin’, the North American exchange ‘Bitmart’, and the domestic exchange ‘Gdac’.

It is analyzed that the news that Wemix will be listed on domestic and foreign virtual currency exchanges is effective in the rapid increase in WeMade’s stock price. All these issues have happened over the past week.

Looking at stock price trends by date ▲Stock price rose 2.55% on the news of Wemix relisting on February 14th ▲We made a 22 year performance announcement (turning to deficit) ▲Announcement of cash dividend decision (earned 750 per share) ▲ Investment in Mirae Asset on February 16th Opinion changed from Neutral to Buy Trading ▲ Changed the investment opinion of Shinhan Investment & Securities to Neutral from Buy on February 16th ▲ Increase in target price of Daol Investment & Securities from KRW 48,000 to KRW 50,000 ▲ Wemade’s stock price all-time high 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 happened during the week, the news that was announced or published by the company was received as good news by investors. In a short period of time, news about earnings, the relisting of Wemix, and the main business of games continued.

Wemade Headquarters.  Photo = News 1
Wemade Headquarters. Photo = News 1

◇ Brokerage still conservative… Wemade’s stock price is higher than the brokerage target price

The perspective of securities companies was conservative, in contrast to the tremendous 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 also gained 50,000, which is about 9% lower than the closing price of Wemade, gained 54,800, 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 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, “The premium compared to competitors is justified as it has many advantages whose contribution timing is uncertain, such as the blockchain business and IP litigation.”

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%.

Photo = Wemade Website
Photo = Wemade Website

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 decline 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 return 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 new games joining the Wemix platform is slower than the company’s goal, and even if new games planned for release this year contribute, it will record an annual loss.” In addition, he explained, “Since the size of the deficit has increased, it is necessary to respond to investments according to the turnaround time.”

Daol Investment & Securities, which showed a relatively positive opinion, cited an “attractive valuation given the possibility of announcing foreign investment in China, the revival of the digital currency market, and expectations of a turnaround in operating profit in 2Q if the new game.” successful” as positive factors.

However, it should also be remembered 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 issued reports on the 16th. Affected by the issue of Wemix being relisted on Coinone on the same day, the stock price of WeMade reached the upper limit.

However, even considering this, 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

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