[Featured Stock] NP, Beneficiary of the With-Corona Era and Metaverse Beneficiary Simultaneously

[Asia Economy Reporter Yoo Hyun-seok] While the KOSDAQ market is plunging, Enpi has maintained an upward trend for two consecutive trading days. It appears that the analysis suggesting steady growth in line with the times is influencing the stock price.

As of 9:59 AM on the 5th, Enpi was trading at 8,430 KRW, up 7.39% (580 KRW) compared to the previous trading day. Since hitting the price limit on the 1st, it has continued its upward momentum.

Enpi, established in 2006, is a video content planning and production company centered on customer experience-based 'Brand Experience (BE)'. It grew based on offline BE advertising content using interactive (BTL) advertising methods. While most advertising production companies experienced negative growth last year due to COVID-19, Enpi grew through video-based online BE content and extended reality (XR) content production. Last year, its sales increased by 11% year-on-year to 22.6 billion KRW, and operating profit rose by 10.2% to 3.6 billion KRW.

Choi Jae-ho, a researcher at Hana Financial Investment, said, "Enpi's core is XR technology that can be linked with the metaverse," adding, "Enpi's 600-pyeong scale 'LED Wall-based XR Stage' that it operates independently is the largest in Korea."

Among companies related to the metaverse, Enpi is steadily generating actual profits. Last year's sales composition by business division was 40.4% offline BE, 42.0% online BE, 15.5% XR content, and 2.1% others.

Researcher Choi explained, "Attention should be paid to the real-time content that the alliance of Naver, YG Entertainment, and Wysiwyg will showcase." He continued, "Enpi established a joint venture, YN C&S, together with Naver, YG Entertainment, and Wysiwyg Studio for the purpose of next-generation content production and XR total studio development."

He also emphasized, "The business model involves producing real-time content streamed to Naver using YG Entertainment's global artist IP," and "Enpi's LED Wall-based XR Stage is easily expandable to live concerts requiring real-time interaction."

Enpi is pursuing M&A of two companies related to video content. Researcher Choi expects Enpi to develop its own virtual influencer IP through joint development with partner companies.

Enpi's subsidiary, Enpi C&C, holds the IP for the 'Running Man Untact Fan Meeting' scheduled, and XR content is currently being broadcast live with the country's largest hip-hop label and a mega entertainment agency for an idol 'Untact XR Live Concert.' It is also scheduled to participate in the government's '2020 Digital New Deal Cultural Content Strategy' flagship project, the 'Gwanghwadae 5G Technology Utilization Interactive Content Development Project.'

Researcher Choi emphasized, "Next year, a gradual recovery of offline BE is expected with the opening of the with-COVID era," adding, "With the acceleration of digitalization, an expansion of orders in a hybrid form combining offline BE with online BE and XR content is anticipated."