[Click eStock] "Vespa, Turnaround Certain Next Year... Potential Hit if 'KingsRaid' Enters China"

[Asia Economy Reporter Yoo Hyun-seok] SK Securities analyzed on the 9th that Vespa could achieve a performance turnaround next year. No investment opinion or target price was provided.

Vespa is a mobile game specialist focusing on RPG, strategy simulation, and casual games. As of the third quarter, its main revenue comes from the service of KingsRaid (a character-collection mobile RPG), which is directly serviced in over 150 countries.

Lee So-jung, a researcher at SK Securities, said, "Since the official launch of KingsRaid in 2017, the stock price has significantly declined compared to the IPO price of 35,000 KRW due to a decrease in sales and increased development costs starting from the first quarter of last year," but added, "With the new game release schedule delayed to next year, all negative factors that could be reflected in the stock price are believed to have already been accounted for."

A revaluation is expected to take place from next year. He stated, "From next year, a revaluation of the company is expected due to the recovery of KingsRaid sales and the anticipation of new game releases funded by development costs," and evaluated, "Most of the financial products held as of the third quarter are principal-guaranteed products, so considering cash and cash equivalents, the financial risk is not significant."

In particular, sales improvement is expected through both existing and new games. He explained, "This month, a sales recovery is anticipated following the update of new content 'Raider' for KingsRaid," adding, "Raider is a new content where characters have companions who can increase their abilities, so it is highly likely that sales will be generated from existing paying users."

The researcher emphasized, "Vespa plans to release six new mobile games next year," and highlighted, "They have recruited Lee Wan-soo, former Netmarble Business General Manager who led the success of Lineage 2 Revolution and Blade & Soul Revolution, to oversee marketing and operations of new games starting next year, which is expected to ensure smooth launches and operations."

He also emphasized the possibility of entering the Chinese market. He said, "Since October, the KingsRaid-based animation has been broadcast in Japan, China, Taiwan, the United States, and Korea, confirming the influx of new users," and stressed, "With the KingsRaid animation accumulating 3 million views in China, the expansion of IP value suggests a high possibility of success upon entering the Chinese market."

This content was produced with the assistance of AI translation services.