[Click eStock] "ESTsoft, Need to Enhance Corporate Value Due to New AI Service Business"

Kiwoom Securities analyzed on the 14th that Eastsoft needs to enhance its corporate value due to the full-scale launch of its new artificial intelligence (AI) service business. No investment opinion or target price was provided.

Eastsoft recently launched the auto dubbing service ‘AI Video Translator.’ This generative AI service synchronizes the original video's language and lip movements, converting videos into multilingual content without subtitles or voice dubbing, thereby improving video production efficiency.

Oh Hyun-jin, a researcher at Kiwoom Securities, explained, "As the global influence of content increases, demand for multilingual content is rising not only among streaming platform users but also in the entertainment and education industries." He added, "The global AI auto dubbing market is expected to grow from $783 million in 2023 to $1.88 billion by 2030."

He also emphasized the importance of the AI search engine service. He said, "Attention is also needed for the AI search engine service preparing for its official launch." He added, "It is understood that the company will release a real-time web search engine similar to Perplexity by advancing ‘Alan,’ an LLM (large language model) application service." He further noted, "The competitiveness compared to existing companies lies in the ability to provide real-time web-based information not only from the latest news but also linked with the subsidiary portal Zoom DB."

He stressed that since the global investment industry recently tends to assign high corporate values to companies operating service businesses through AI technology, Eastsoft’s corporate value also needs to be enhanced.

Researcher Oh explained, "HeyGen, which provides video translation services using generative AI technology, succeeded in raising investment this year with a corporate value of $440 million, a sixfold increase in just four months." He added, "It is understood that AI search engine company Perplexity is currently raising investment with a corporate value of $9 billion, a threefold increase compared to last June."

He concluded, "With the full-scale launch of the AI service business scheduled for 2025, it is necessary to reflect the growth potential of the AI sector in Eastsoft’s stock price."