[Featured Stock] NP Leads Global Market with Korean-style XR... Qualcomm Follows Samsung, Eyeing Metaverse with Interest

[Asia Economy Reporter Hyungsoo Park] NP is showing strong performance. The news that NP is partnering with the U.S. multimedia solutions company Diversified to explore comprehensive XR technology and content business appears to have influenced the stock price. Diversified has partnerships with global companies across various sectors including big tech, broadcasters and OTT, U.S. sports leagues, and finance. Its major clients include Amazon, Facebook, Google, Netflix, CNN, Fox News, MLB, NFL, NBL, JP Morgan, and Morgan Stanley.

Diversified is the number one multimedia solutions company providing system infrastructure to major stadiums, broadcasters, and arenas in the U.S. Its annual revenue reaches 1.2 trillion KRW (1 billion USD).

News has also been continuously reported that global companies such as Samsung Electronics and Qualcomm are actively fostering the metaverse ecosystem. Qualcomm, the world's largest mobile communication chip company, has established a metaverse fund worth 100 million USD (approximately 122.2 billion KRW). The plan is to grow the metaverse ecosystem through this fund. Qualcomm launched the ‘Snapdragon Metaverse Fund’ to support the metaverse technology ecosystem including extended reality (XR) and artificial intelligence (AI). Earlier, Samsung Electronics presented a new business blueprint focused on robots, metaverse, and AI at its shareholders' meeting held on the 16th at the Suwon Convention Center. NP’s XR division has been recognized for its technological capabilities through references, having secured multiple unpack events after being the first domestic company to win the ‘Samsung Electronics Galaxy Unpack’ event at CES 2021.

As of 9:52 AM on the 23rd, NP is trading at 13,650 KRW, up 8.76% from the previous day.

NP and Diversified have agreed to mutually cooperate for global metaverse business including joint research and development of advanced extended reality (XR) technology, global XR content production, and XR system construction.

They expect a strong synergy effect from NP’s XR business portfolio and Diversified’s global network. In March last year, NP established Korea’s first permanent XR studio, ‘NP XR Stage,’ in Gimpo and held XR concerts with SM Entertainment and AOMG. NP also entered the virtual influencer market by acquiring the digital marketing company Pentabridge.

Kevin Collins, Global CEO of Diversified, said, "NP’s XR metaverse technology competitiveness is strong in the global market," adding, "Based on Diversified’s international supply capacity and network with business infrastructure in 70 countries worldwide, we will actively collaborate with NP to comprehensively advance the XR-based metaverse business."

Song Bangho, CEO of NP, said, "The synergy created by NP’s XR technology and Diversified’s network and technological capabilities will be a definite driving force for overseas expansion," and added, "We will carry out various joint projects and new businesses ranging from new technology research and development to studio construction and XR metaverse development."

Researcher Jongwon Lee of Sangsangin Securities forecasted, "This year, after removing one-time costs such as listing expenses, the margin rate will recover to the mid-teens of 10%," and predicted, "Expansion of clients centered on IT companies based on gaming, entertainment sectors, and XR technological capabilities will be key."