[Click eStock] "Cheongdam Learning, Expected Expansion Through Metaverse Platform"

[Asia Economy Reporter Yoo Hyun-seok] Hanyang Securities analyzed on the 16th that Cheongdam Learning is expected to expand its domain through a metaverse platform. No investment opinion or target price was presented.

Cheongdam Learning launched 'Live Class' in March last year, which is conducted alongside online classes. After COVID-19, due to the increase in student dropout rates and closures of small and medium-sized academies, the number of students is increasing. Kim Yong-ho, a researcher at Hanyang Securities, said, "The number of students increased by 14.3% year-on-year from 2.05 million in the first quarter of last year when Live Class was launched to 2.15 million in the first quarter of this year," adding, "As they pursue high-quality education, the dropout rate appears to be low, and the digital transformation triggered by COVID-19 is clearly evident in the education market, so continuous and stable external growth is expected."

Hanyang Securities expects Cheongdam Learning's sales and operating profit this year to reach 206 billion KRW and 34.6 billion KRW, respectively, representing increases of 14.4% and 104.5% compared to the previous year. He said, "From the first quarter of this year, the leverage effect due to the rapid increase in students has been confirmed," adding, "When the online-only Live Class through the metaverse platform scheduled to be launched within the year is launched, the number of students per instructor can increase, and the influx of students outside the metropolitan area is also expected."

He added, "This can result in operating leverage, so there is a high possibility that profitability will improve further. With profitability strengthening alongside external growth, this year is expected to be better than last year, and next year better than this year."

He emphasized that special attention should be paid to domain expansion through the metaverse platform. He said, "We plan to launch our self-developed metaverse platform ‘Bouncy’ within the year, operating comprehensive educational programs including live classes, games, and SNS services within the metaverse platform," adding, "Starting in Korea and aiming for global services including China, it will enable language exchange among students, and the quality of education provided through Bouncy is expected to improve significantly, which is anticipated to further reduce student dropout rates."

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