[Click eStock] "Vespa, Momentum Generated by Consecutive New Releases"

[Asia Economy Reporter Yoo Hyun-seok] Kiwoom Securities analyzed on the 4th that Vespa is at a momentum point due to consecutive new releases, and that significant performance growth is expected starting this year as the bottom. No investment opinion or target price was provided.

Jae-il Park, a researcher at Kiwoom Securities, stated, "The mobile puzzle game Aggretsuko: Salaryman's Counterattack, utilizing the popular Netflix (Japan) animation Aggressive Retsuko IP, was released on the 27th of last month in over 120 countries including Korea, Japan, and North America, and surpassed 100,000 downloads on Google Play Korea within three days of release." He added, "Aggressive Retsuko Season 3 is scheduled for exclusive broadcast on Netflix Japan on the 27th, and game traffic is expected to rise sharply after the broadcast."

He evaluated, "In the third quarter, the largest update of the year for KingsRaid is planned, and in the fourth quarter, an animation based on the KingsRaid IP titled KingsRaid - The Will Continues is scheduled for release in Japan. Additionally, the global CBT for Time Defenders (defense RPG) is planned."

He forecasted that growth momentum will remain valid as numerous new titles are expected to be released next year. Researcher Park emphasized, "Many new titles are scheduled for release next year, and growth momentum is expected to remain valid. In the first half of next year, the global official release of Time Defenders is planned, and by the end of the first half, the remastered version of the flagship game KingsRaid, KingsRaid Season 2, is scheduled for release. In the second half, three medium-to-large scale games are planned for release."

He stressed, "Due to a decline in sales of the flagship game KingsRaid, this year's sales are expected to be 88.2 billion KRW with an operating loss of 9.2 billion KRW, indicating poor performance. However, from next year, significant performance growth is expected, and the company is likely to escape the one-game risk that had been a discount factor." He added, "This is due to the growth momentum from consecutive new releases starting in the second half of this year and the release of the flagship game KingsRaid Season 2."