Wemade’s revenue will rebound from signing a contract for a new game with a Chinese company, said Samsung Securities on Feb. 28 raising the target price to 65,000 won (US$58.09) from 49,000 won.
The game company has inked a license deal for a new mobile game based on “The Legend of Mir 2” with China’s 37 Games, developed by its affiliate Guangzhou Jisheng Information Technology. This will boost revenue from royalties, said analyst Oh Dong-hwan, forecasting that the deal will also help settle the ongoing dispute over 37 Games’ web game infringing Wemade’s intellectual property rights.
Although sluggish overseas sales of Wemade’s mobile game “Icarus M” and declining revenue from existing license games may undermine the effect of the new contract, the deal will certainly strengthen its position in China, added the analyst.
By Hwang You-mee (firstname.lastname@example.org)