This is an AI translated post.
Kthreei Secures Investment Ahead of IPO and XR Industry Growth
- Writing language: Korean
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- Information Technology
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Summarized by durumis AI
- Kthreei is preparing for its IPO, highlighting its XR technology and market expansion capabilities. It is securing a competitive edge in the realistic content market, which is projected to reach KRW 33 trillion by 2025.
- The company has seen an increase in order volume, from 21 in 2021 to 25 in 2022. Revenue has also increased from KRW 10.7 billion in 2021 to KRW 13 billion in 2022. In the first quarter of this year, the company recorded KRW 3.5 billion in revenue and KRW 200 million in operating profit, making three consecutive years of profitability likely.
- Kthreei plans to secure additional growth drivers by expanding its digital twin business. The investment banking industry anticipates a high valuation for Kthreei based on its increasing order backlog and profit generation.
- Highlighting the scalability of the XR industry
- Increase in orders and improvement in performance
- Choosing a technology-based listing method
Source - Kthreei
K-ThreEye is preparing for an initial public offering (IPO), emphasizing the scalability of its extended reality (XR) technology and market. According to the investment banking (IB) industry on the 12th, K-ThreEye plans to conduct institutional demand forecasting at the end of this month. The IPO schedule was postponed for three weeks due to the additional business status, outlook, and investment risk information added to the securities registration statement. K-ThreEye is highlighting the growth potential of XR immersive content and digital twin industries as investment attractions. The domestic immersive content market, which was KRW 2.8 trillion in 2019, is expected to expand to KRW 33.191 trillion by 2025.
K-ThreEye's number of orders increased from 21 in 2021 to 25 in 2022, and the order amount increased from KRW 7.7 billion to KRW 18.9 billion. In the first half of this year, it successfully secured new orders worth over KRW 11 billion. In the second half of the year, it is expecting orders worth approximately KRW 18 billion. K-ThreEye has developed Korea's first open-source software XR middleware solution for XR content development and execution, enabling the creation of various content.
K-ThreEye, which successfully turned a profit (KRW 1.7 billion) in 2022 after recording an operating loss of KRW 527 million in 2021, saw its operating profit decline to KRW 1.1 billion last year due to increased costs related to listing preparation and office relocation, but its sales increased from KRW 10.7 billion to KRW 13 billion. In the first quarter of this year, sales were KRW 3.5 billion and operating profit was KRW 200 million. Considering that performance tends to be concentrated in the second half of the year, three consecutive years of profitability are likely.
K-ThreEye plans to secure additional growth drivers by expanding its digital twin business. However, opinions differ in the market regarding the appropriate corporate value. An IB industry official said that K-ThreEye is already generating profits from its core business and has an order backlog more than twice as large, leading to a different assessment.
