Eastsoft's Natural Stock Price Rise... "AI Business Visibility and Game Momentum"

[Asia Economy Reporter Hyunseok Yoo] Eastsoft's stock price continues to rise. This is analyzed as momentum in the gaming business segment being highlighted along with the visible realization of practical artificial intelligence (AI).

According to the financial investment industry on the 7th, Eastsoft closed trading at 16,350 KRW on the 6th. This is an 82.48% increase compared to the end of last year.

This year's stock price increase is attributed to the growth of the company's business segments. Eastsoft was established in 1993. Its major subsidiaries include East Security (ownership 89%), Zoom Internet (ownership 52%), East Games (ownership 100%), and DeepEye (ownership 60%). As of last year, the sales proportion by business segment was S/W 39.3%, Portal (Zoom Internet) 28.8%, Games (East Games) 24%, Commerce 6.4%, and Asset Management (Zoom Internet) 1.6%.

Kim Jang-yeol, head of the research center at Sangsangin Securities, said, "We identified momentum such as the implementation of virtual humans, updates to the real-time virtual fitting glasses shopping mall in the commerce segment, and the launch of Cabal Mobile in the Philippines in the gaming segment. The improvement in last year's performance and the favorable results through the first quarter of this year naturally led to an increase in market capitalization."

Kim predicted that Eastsoft's market capitalization could reach between 200 billion and 250 billion KRW. As of the 6th, the market cap was 180 billion KRW. He explained, "The value of S/W is between 73.4 billion and 102.8 billion KRW, games between 87 billion and 101.5 billion KRW, and the portal and subsidiary DeepEye are valued at 102.9 billion and 30 billion to 48 billion KRW, respectively."

In particular, Eastsoft's value is expected to further increase depending on the growth of its business segments. "The difference in valuation multiples can greatly expand depending on the speed of expansion in the application of virtual humans, a concrete example of practical AI implementation, and the growth speed of DeepEye's real-time virtual fitting glasses shopping mall in the commerce segment," he emphasized. "An official estimate will be possible at a point when the company presents a more concrete vision and roadmap for updates."