Wemade is a game company that makes mobile MMORPGs such as the 'Legend of Mir' series and 'Night Crows,' released in 2023; it makes money from game revenue (about ₩115.2 billion in Q1, with 66% of the ₩104.6 billion mobile figure coming from overseas), Mir IP royalties (about ₩30.5 billion), and blockchain revenue based on its own Wemix coin (about ₩7.5 billion). It issued a corporate-value-up plan in March, its May provisional Q1 results confirmed a third straight quarter of profit, and a resolution of its 'Legend of Mir 2' IP royalty dispute with China's Kingnet meant delayed royalties were booked into results. What stands out lately is that with three straight quarters of operating profit it is emerging from a loss phase, and it has strengths in second-half new titles and a China Mir license as drivers plus net-cash capacity, but net profit swings widely on Wemix coin valuation gains and losses and one-off license bookings, so it is hard to simply extrapolate a given quarter's number, and the second-half picture depends on whether the new titles are hits.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 429.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 68.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 13.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 8.1% higher than a year earlier.
- ROE is -4.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.7%.
Ownership & governance As of 2025-12-31
Largest shareholder Park Kwan-ho 39.33% (individual)
Controlling bloc incl. related parties 39.34%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Wemade is a game company that makes and sells mobile MMORPGs.
- Its flagship titles are the 'Legend of Mir' series and 'Night Crows,' released in 2023.
- It earns money in three broad streams.
- First is game revenue.
- As of Q1 2026 this was about ₩115.2 billion, of which ₩104.6 billion came from mobile games alone.
- 66% of mobile revenue came from overseas.
- Second is license revenue, about ₩30.5 billion.
- As the 'Legend of Mir 2' IP royalty dispute with China's Kingnet was resolved, delayed royalties were booked into results.
- Third is blockchain (Wemix) revenue, about ₩7.5 billion.
- This is income earned by running in-game economy systems based on its own Wemix coin.
- In sum, games are the core business, with the royalties from the long-running Mir IP and Wemix supporting it.
- The latest close is ₩18,380 and the market cap is ₩624.0 billion.
- The price sits above the 20-day line (₩18,040) and below the 60-day line (₩20,145).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.0, a neutral level.
- The one-month change is +9.1%, the three-month change is -5.3%, and the price is -46.3% from its 52-week high.
- Relative strength versus the KOSDAQ is 59 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 41% of all stocks by strength.
- Over the past three months it outpaced the index by 22.8%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The valuation needs care in interpretation because of the earnings situation.
- On a full-year 2025 basis there was a net loss, so a P/E ratio (how many times a year's earnings the share price is) cannot be calculated.
- Instead the P/B ratio (how many times book net assets the share price is) is 1.53x and the P/S ratio (how many times revenue the share price is) is 1.22x.
- The financial structure is on the burdened side.
- The debt ratio (debt relative to equity) is high at 429%.
- The current ratio (assets that can be turned into cash right away relative to debt due within a year) is 68.7%, below 100%.
- Cash, however, is ample.
- Net debt (total borrowings minus cash) is -₩290.8 billion, that is, a net-cash position with more cash than debt.
- The FCF yield (cash actually generated relative to market cap) is 7.4%, so cash generation itself is sound.
- The debt-ratio figure on the books looks heavy, but one must also note that in reality this is a company holding net cash.
- Over a longer view, this is a company with large swings in results.
- Revenue was ₩614.0 billion in 2025, down 13.7% from the prior year.
- This was because of a natural decline after Night Crows' initial burst.
- Net profit swung wildly year to year: a profit in 2021, large losses in 2022-2023, a profit in 2024 and a loss again in 2025.
- But the tone has been changing recently.
- Q1 2026 revenue was ₩153.3 billion, up 8.1% from a year earlier.
- With operating profit of ₩8.5 billion it extended a third straight quarter of profit, and net profit was also positive at ₩19.9 billion.
- The recovery rests on three axes: China Mir IP royalties normalized, Wemix blockchain revenue revived, and the overseas share of game revenue rose.
- Looking ahead, a Night Crows IP follow-up title and new titles such as 'Midnight Walkers' are scheduled for the second half.
- The China license for the Mir IP also ramps up in earnest from the second half.
- So unlike last year's full-year loss, this year has a good chance of shifting to a profitable footing.
- This is not a place to call it 'expensive' just because there is no P/E on last year's basis; at an inflection point where profit turns positive, the picture fits when viewed on this year's basis.
- The recent trend is confirmed in the disclosures too.
- In March the company issued a corporate-value-up plan (voluntary disclosure), presenting directions for shareholder returns and profitability improvement.
- In April there was an advance notice of earnings disclosure and an investor briefing (IR).
- In May it issued provisional Q1 2026 results as a fair disclosure.
- These provisional results were the key event confirming a third straight quarter of profit.
- In May there was also a filing on granting stock options to executives and staff, which reads as the company strengthening talent-attraction and share-linked incentives at an earnings inflection point.
- The repeated large-holding reports on equity are also worth noting.
- The strengths and cautions must be seen together.
- The strength is the direction of results.
- With three straight quarters of operating profit it is emerging from a loss phase.
- Additional drivers - second-half new titles and the China Mir license - are also on standby.
- Being in a net-cash position, it has cash capacity too.
- The caution is the volatility of profit.
- Net profit swings widely on Wemix coin valuation gains and losses and one-off license bookings.
- As a result it is hard to simply extrapolate a given quarter's number.
- The second-half picture also changes depending on whether the new titles are hits.
- In summary, if the new titles establish themselves overseas and Mir royalties keep flowing in, the profit recovery continues.
- Conversely, if the new titles underperform or Wemix-related gains and losses swing, quarterly profit can fluctuate widely.
🔎 Valuation vs peers Inconclusive
Compared against listed domestic game companies with a similar business profile.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NCSOFT | 15.51x | 1.60x | 10.30% |
| Netmarble | 13.93x | 0.58x | 4.14% |
| Pearl Abyss | — | 2.93x | -1.05% |
With a full-year 2025 net loss, a P/E on last year's basis cannot be calculated. So it is hard to declare it over- or undervalued on last year's numbers. The P/B is 1.53x, similar to NCsoft (P/B 1.7x), which posts steady profits. It is higher than Netmarble (0.58x) but lower than Pearl Abyss (3.02x). The crux is that it is in a phase where profit turns positive. Q1 profit was confirmed, and the drivers of second-half new titles and the Mir license remain. The key is how long this profit continues. Because the volatility of profit is high, it is too early to settle on a stable multiple, so we view it as inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩18,380 and the market capitalization is ₩624.0 billion. The price sits above its 20-day moving average (₩18,040) and below its 60-day moving average (₩20,145). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.0, a neutral level. The one-month change is +9.1%, the three-month change is -5.3%, and the position relative to the 52-week high is -46.3%. Relative strength versus the KOSDAQ is 59 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 59% of all stocks. Over the past three months it outpaced the index by 22.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +22.77% / 6M -14.89% / 12M -44.69%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.53x is in line with the sector median (1.58x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -4.6%, below the sector average (5.0%). The operating margin is 1.7%. The debt ratio is 429.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $401.1M | $471.8M | $407.0M | -13.74% ↓ slower |
| Operating profit | -$73.2M | $4.7M | $7.1M | +51.20% |
| Net profit | -$132.9M | $124.9M | -$12.3M | -109.88% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $222.0M | $307.2M | $401.1M | $471.8M | $407.0M |
| Operating profit | $64.5M | -$56.3M | -$73.2M | $4.7M | $7.1M |
| Net profit | $203.3M | -$122.9M | -$132.9M | $124.9M | -$12.3M |
| Revenue CAGR | 4-yr avg 16.36% | ||||
Revenue fell 13.7% year over year (2023 ₩605.3 billion → 2024 ₩711.9 billion → 2025 ₩614.0 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 51.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 16.4%. The two-year revenue CAGR is 0.7%. In the most recent quarter (Q1 2026), revenue was 8.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 429.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 68.7%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 13.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-24FilingCorporate-value-up plan (voluntary disclosure) issued. Presented directions for profitability improvement and shareholder returns.A signal confirming, over the medium term, the will to improve shareholder returns and capital efficiency. Source
- 2026-04-15IRInvestor briefing (IR) held and advance notice of earnings disclosure. Strengthened earnings communication.In the short term, draws market attention ahead of the earnings release. Source
- 2026-05-12EarningsProvisional consolidated Q1 2026 results fair disclosure. Revenue ₩153.3 billion and operating profit ₩8.5 billion, a third straight quarter of profit.A key event confirming an exit from the loss phase. Positive for the medium-term profit direction. Source
- 2026-05-15FilingQ1 2026 quarterly report filed. Revenue ₩153.3 billion, operating profit ₩8.5 billion and net profit ₩19.9 billion confirmed.Material that finalizes the provisional figures. The details of the swing to profit can be confirmed. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Amended filing
- 2026-05-12EarningsFair-disclosure notice
- 2026-04-20OwnershipOwnership-change filing
- 2026-04-15Disclosure
- 2026-04-15EarningsEarnings disclosure
- 2026-04-13OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-24Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.