[Click eStock] "Vespa, Focus on Changes Created by New Releases"

[Asia Economy Reporter Yoo Hyun-seok] Mirae Asset Daewoo analyzed on the 26th that attention should be paid to the changes that new releases will bring to Vespa. No investment opinion or target price was presented.

Vespa recorded sales of 13.8 billion KRW and an operating loss of 10.9 billion KRW in the first quarter. He said, "Personnel expenses were 9 billion KRW, which is a cost pre-invested in new game development," adding, "Considering platform fees linked to sales, server fees, and advertising expenses (a significant portion linked), profitability recovery through fixed cost coverage is possible depending on the success of the new games."

Vespa plans to sequentially release multiple games including Cattopia Rush, Time Defenders, King's Raid Season II, and Project CA. Among these, whether Time Defenders reaches the break-even point will be an important factor, analyzed Sangjun Han, a researcher at Mirae Asset Daewoo. He said, "Among mobile defense RPG games released in the Japanese market, Arknights can be cited as a competitor," adding, "Arknights' sales in the Japanese region in 2020 are estimated at around 100 billion KRW, and excluding the release month of January, it generates about 300 million KRW in daily sales on a monthly basis."

He said, "Looking at the Producer Letter after the Time Defenders CBT, there are some improvement requests regarding combat screen visibility and balance, but overall it was evaluated as a game that well captured the essence of tower defense with good graphics," emphasizing, "Since games targeting the Japanese market, which performed best in 2021, are scheduled to be released sequentially, it is judged to be on the path to approaching valuation areas based on 12-month FWD from the new release momentum."

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