Subsidiary DeepEye's 'Rounds' Integrates Deep Learning Technology into 3D Augmented Reality
Only Apple iOS Representative AR Service in Korea... Blue Ocean with No Domestic Competitors
Business Model Similar to Warby Parker, Recently Listed on the New York Stock Exchange
[Asia Economy Reporter Hyungsoo Park] ResearchAlum on the 6th described Eastsoft as an overlooked hidden metaverse company and predicted it will take another leap forward with artificial intelligence.
Donghyun Lee, Senior Researcher at ResearchAlum, said, "Eastsoft is a company whose annual sales have never decreased since its listing," adding, "It is reinvesting in new businesses utilizing artificial intelligence based on the continuous cash flow generated from ALTools and antivirus software."
He continued, "It is positive in that it secures growth momentum by expanding related businesses based on stable operations," and analyzed, "Considering the Zoom Internet equity value of about 70 billion KRW and the high-growth potential of DeepEye AI Plus Lab, the market capitalization of 130 billion KRW is undervalued."
He emphasized, "Considering that unlisted companies possessing virtual human and AI technologies are recognized with corporate values between 100 billion and 200 billion KRW, Eastsoft’s market capitalization does not reflect the value of its already solid cash cows such as software, security, and games beyond AI technology."
He added, "East Security is preparing for its IPO," and "If the listing succeeds, a revaluation of Eastsoft’s market capitalization will be possible."
As of the first half of this year, Eastsoft recorded sales of 43.5 billion KRW and operating profit of 4.6 billion KRW, increasing by 12.9% and 202.6% respectively compared to the same period last year. The researcher estimated, "Considering the peak season effect in Q4 and the new release of the game Cabal Mobile, this year’s sales will reach 97.7 billion KRW with an operating profit margin of about 10%."
Eastsoft is recently attempting to transform from a security antivirus software company into an artificial intelligence company. Rounds, operated by its subsidiary DeepEye, is a platform that allows virtual fitting and purchasing of glasses using 3D augmented reality and deep learning technology in a non-face-to-face manner. It has the advantage of enabling customers to easily try on and order thousands of glasses and sunglasses from home without visiting offline stores. Currently, 1,000 glasses brands are listed. The researcher explained, "It is the only domestic company selected as the representative AR service for Apple iOS," adding, "There are no competitors domestically."
He said, "A foreign company with a similar business model is the US-based Warby Parker," emphasizing, "Warby Parker is a platform that allows consumers to virtually try on glasses at home and purchase them."
He also introduced, "Using the app, vision can be measured in 10 minutes, and ophthalmologists affiliated with Warby Parker remotely conduct vision tests," adding, "They have not only online distribution but also about 100 stores across the United States."
He continued, "It was listed on the New York Stock Exchange on September 30," explaining, "The company’s value is estimated at about 5 billion USD (5.9 trillion KRW)."
Warby Parker, a popular online eyewear retailer in the US, was listed on the New York Stock Exchange (NYSE) on the 29th of last month, 11 years after its founding. Founded in 2010 by four classmates from the University of Pennsylvania’s Wharton School who questioned, ‘Why are glasses more expensive than iPhones?,’ the company revolutionized the eyewear market with innovative distribution ideas focusing on online sales, good quality, and price disruption, breaking the monopoly of the US eyewear industry and earning the nickname ‘Netflix of the eyewear industry.’ Choosing a direct listing method, Warby Parker started at a reference price of 40 USD on the first day of listing and closed at 54.49 USD, up 36%, making the company’s value based on issued shares exceed 6 billion USD, attracting attention.
However, the researcher noted, "Under current law, remote medical care is prohibited in Korea, so vision tests by ophthalmologists cannot be conducted, and only opticians can sell lenses with prescriptions," adding, "Recently, movements to allow online sales of prescription lenses have begun domestically, so regulatory easing is expected."
The researcher said, "The Ministry of Economy and Finance has formed a cooperative adjustment body from July to discuss win-win measures between DeepEye and the Opticians Association regarding online eyewear sales services," and expressed hope, "If online sales of prescription lenses are permitted, the growth of eyewear sales business utilizing AR and artificial intelligence will accelerate."
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