[Click eStock] "Cheongdam Learning Launches Educational Metaverse Product... Leap as an Edutech Company"

[Asia Economy Reporter Yoo Hyun-seok] Kiwoom Securities announced on the 18th that Cheongdam Learning is expected to leap forward as an edutech company with the launch of an educational metaverse product. They newly issued a 'Buy' investment opinion and a target price of 46,900 KRW.

Cheongdam Learning recorded sales of 52.5 billion KRW and an operating profit of 8.6 billion KRW in the first quarter. This represents increases of 19.6% and 115.5%, respectively, compared to the same period last year. Kim Doo-hyun, a researcher at Kiwoom Securities, stated, "The first-quarter performance of Cheongdam Learning is significant; excluding a one-time expense of 1.5 billion KRW, the consolidated operating profit exceeded 10 billion KRW, showing a substantial profit realization." He explained, "On a separate basis, achieving an operating profit in the 7 billion KRW range (excluding one-time expenses) suggests an annual operating profit of around 30 billion KRW."

He added, "Profitability improves as the proportion of online sales increases. Currently, the online structure is only accessible to offline students, but with the expected launch of an online-only platform in the second half of the year, a steeper improvement in profitability is anticipated."

Along with this, strong performance is expected to continue due to metaverse educational products and expanded overseas royalty income. Kiwoom Securities expects Cheongdam Learning's sales and operating profit to reach 217.7 billion KRW and 40.7 billion KRW, respectively, this year. He explained, "An educational metaverse product is planned to be launched within the year," and "Based on collaboration with global companies, a leap forward as an edutech company is anticipated."

He continued, "Overseas royalty income is also expected to expand, with royalty normalization in the Vietnam region and the launch of new content, leading to an expected receipt of 3.2 million USD, a 52.4% increase compared to the previous year," emphasizing, "Since the China JV will start from the first half of the year, it is expected to contribute to profitability improvement."