[Click eStock] "Vespa Secures Growth Momentum with Subsidiaries' New Releases... Target Price 15,000 Won"

[Asia Economy Reporter Hyunseok Yoo] Heungkuk Securities analyzed on the 31st that Vespa is currently entering its first new release cycle since its KOSDAQ listing this year. They newly issued a buy rating and a target price of 15,000 KRW.

Vespa is a game development and service specialized company, with its representative work being the "collection-type mobile RPG game" KING’S RAID. Since its official release in February 2017, it has been serviced in 12 languages across 150 countries worldwide. It has recorded over 11 million cumulative downloads and cumulative revenue in the 200 billion KRW range, being recognized as a successful global steady seller.

Heungkuk Securities expects the subsidiaries established by Vespa to show results this year. Researcher Kyung Choi of Heungkuk Securities explained, "In 2018, subsidiaries Nexoniting, Hive (Japan), and Bombus (Vietnam) were established, and last year, significant subsidiaries such as Supercolony, Cocoon Games, and Highnode were acquired, continuing the establishment and acquisition of important subsidiaries. This year is expected to be the year when the fruits of those efforts begin."

He said, "New releases scheduled for this year include Cocoon Games' Immortals Endless Warfare, Highnode's Toy Dreams Match and Final Idle, Hive's AggRetsuko utilizing the Sanrio IP, Supercolony's Catopia Rush, and Nexoniting's Time Defenders. We consider this an important moment entering the first new release cycle since the 2018 KOSDAQ listing, and evaluate it as a very meaningful new growth driver that continues KING’S RAID's second growth phase after 2021."

Researcher Choi added, "Vespa announced yesterday a decision to acquire 7 billion KRW worth of treasury stock. Considering KING’S RAID's sales recovery centered in Japan in Q4 last year and the growth momentum from new releases by subsidiaries fully operating this year, despite high stock price volatility, this confirms the company's positive will and confidence in higher growth potential."

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