[Click eStock] "Giantstep, Turnaround Expected Next Year"

Korea Investment & Securities analyzed on the 23rd that Giant Step is expected to turn profitable next year due to its transition to a B2C (business-to-consumer) revenue model. No investment opinion or target price was provided.

Giant Step is a VFX (visual effects) studio established in 2008. Its main business sectors are advertising VFX, film and drama VFX, and real-time content. The company has strengths in AI-based real-time content production.

Ando Young, a researcher at Korea Investment & Securities, stated, "We expect a turnaround next year through the transition from the existing order-based revenue model to a B2C revenue model," adding, "Currently, most of the content production revenue, which accounts for 75% of sales, comes from order-based advertising and video VFX." He continued, "Next year, the B2C revenue model will be fully activated through various new businesses using real-time content (exhibitions, virtual humans, games, etc.)."

He explained, "Short-term external growth will come from the exhibition business," and added, "A media art exhibition is scheduled to be held early next year, and since there is a reference of participating in offline XR performance production in collaboration with K-pop IP holders, exhibitions in cooperation with the entertainment sector are also expected." He further noted, "Considering that Arte Museum, a representative domestic media art exhibition, attracted more than about 1 million visitors annually per branch, there is a very high potential for revenue increase if it becomes a hit."

He continued, "Virtual humans and social network games are expected to be long-term growth drivers," emphasizing, "While virtual human projects have mostly been research and development-oriented until now, monetization attempts are expected to be actively made starting next year."

Researcher Ando said, "A social network game is scheduled to be released in the second half of next year," adding, "The service, which provides a virtual space to decorate avatars and worlds and communicate with others, has completed production, and marketing and beta testing activities will continue from the end of this year through the first half of next year."