[Click eStock] "Carrysoft, Resumption of Performance Business and Animation Export Expectations"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment on the 24th released a forecast that Carrysoft is expected to benefit from the reopening, leading to sales expansion and a stable turnaround to profitability.

Carrysoft is a content and media production and sales company that owns the proprietary IP called ‘Carry and Friends.’ Its business areas are divided into education, performances, animation, and metaverse games. Education and performances are expected to benefit from the reopening. The education business is conducting the English education content service ‘Hello Carry English Kindergarten’ using its IP. In February, it launched the Hello Carry English mobile service targeting China, gaining recognition, and also started a 24-month English education service for domestic kindergartens.

Researcher Dohyun Kim of Hana Financial Investment said, “The upcoming government’s pledge for early childhood care services is gaining attention in conjunction with the reopening, and since it can also expand into the homeschooling B2C market, it is positive for performance improvement.”

Performances were canceled in 2020 and 2021 due to COVID-19, so there were no sales during those years, but performances resumed from November last year. Researcher Kim explained, “New performances are scheduled for the fourth quarter of this year, so new sales generation and margin improvement compared to last year are expected.”

Recently, metaverse-related stocks, officially recognized by Samsung Electronics as a next-generation business area, have been attracting attention. Besides technological capabilities, well-known IPs capable of securing users are essential for the metaverse. Carrysoft owns proprietary IP, and in the fourth quarter of this year, it plans to establish a joint venture with Mentisco, the developer of the game Hunter’s Arena, to release the metaverse blockchain game ‘Carry Park.’ Additionally, the theatrical animation ‘Carrie & Superkola’ is undergoing final review for release in China and is scheduled to be supplied to over 300 cinemas so far.

Researcher Dohyun Kim stated, “Producing with proprietary IP not only reduces production costs but also expanding sales in China, where the film market is larger than in Korea, is a definite growth driver,” adding, “Both animation and games share a single worldview born from the company’s IP, so the lock-in effect highlights strengths compared to competitors.”