[Click eStock] "Cheongdam Learning to Launch Online Platform in Q3... Annual Operating Profit of 40 Billion Won"

[Asia Economy Reporter Hyunseok Yoo] Kiwoom Securities forecasted on the 3rd that Cheongdam Learning's performance improvement will continue due to the launch of an online platform. The investment opinion 'Buy' and the target stock price of 46,900 KRW were maintained.

Kiwoom Securities projected that Cheongdam Learning's sales and operating profit for the second quarter will reach 51.6 billion KRW and 9.7 billion KRW, respectively, representing increases of 16.4% and 72.9% compared to the same period last year. Kim Doohyun, a researcher at Kiwoom Securities, stated, "The strong performance is due to an increase of 500 new students in April compared to the previous month," adding, "We believe the trend of increasing student numbers will continue with the launch of the creative convergence education program (C.Honors) in collaboration with CMS Edu, scheduled for June."

Kiwoom Securities particularly emphasized the importance of the online platform launch. Kim said, "Cheongdam Learning plans to launch an online-exclusive platform, focusing on securing students from regions outside the metropolitan cities, which are currently uncovered," and added, "The convergence curriculum with the affiliated company CMS Edu will be launched in June, contributing to the increase in student numbers."

Researcher Kim explained, "An educational metaverse product is planned to be released within this year," and noted, "Based on collaboration with global companies, a leap forward as an edutech company is expected." He continued, "Overseas royalty income is expected to expand, with royalty normalization in the Vietnam region and the launch of new content, leading to an anticipated receipt of 3.2 million USD, a 52.4% increase compared to the previous year," adding, "Since the China JV direct-operated stores (one in the first half and two expected in the second half) will start from June, it is expected to contribute to overall profitability improvement."

In particular, an annual operating profit of 40 billion KRW is also considered fully achievable. He emphasized, "The operating profit has been steadily in the 40 billion KRW range since 2021," and added, "With the launch of the creative convergence education program with CMS Edu in June, the second-quarter operating profit is expected to approach 10 billion KRW on a consolidated basis." He further stressed, "Considering the launch of the online-exclusive platform and the educational metaverse product in the second half, the annual operating profit of 40 billion KRW is a conservative figure."