[Click eStock] "Vespa, New Releases Coming One After Another... Target Price Up"

[Asia Economy Reporter Jang Hyowon] Heungkuk Securities raised the target price for Vespa to 34,000 KRW on the 20th, stating that the release of new games prepared this year will lead to improved performance.

Choi Jongkyung, a researcher at Heungkuk Securities, said in a report on the day, “Vespa recorded sales of 13.8 billion KRW and an operating loss of 10.9 billion KRW in the first quarter of this year,” adding, “Although the deficit trend is regrettable, it is a time to focus on the upcoming new releases as the losses are due to development and investment costs for expanding new businesses related to the new games scheduled for release this year.”

Vespa plans to consecutively release multiple new titles this year, including Time Defenders, Cattopia Rush, and KingsRaid Season 2.

Time Defenders is a defense role-playing game (RPG) featuring animation-style 3D characters, boasting the highest quality ever with rich content, diverse strategies, and an attractive story, making it a representative new title of the year. It is receiving favorable reviews through a closed beta test (CBT) conducted in Japan, Vespa’s largest service market.

Cattopia Rush is a mid-core game combining cute sensibilities with hard action. It is scheduled to be serviced mainly in the North American market in June.

KingsRaid Season 2 is Vespa’s flagship title, planned to be completely revamped with new graphics and story. Ahead of the Season 2 release, the final large-scale update for Season 1, “X: The Final,” is scheduled for the 25th.

Researcher Choi said, “Investments to secure next growth engines such as new game development and new business expansion are expected to result in the release of new games prepared this year and improved performance,” adding, “Therefore, we maintain a buy rating and raise the target price to 34,000 KRW.”