[Click eStock] "M83 to Emerge as an AI Content Technology Platform"

Shinyoung Securities stated that M83 is poised to emerge as an AI content technology platform as the adoption of artificial intelligence (AI) accelerates in the visual effects (VFX) market.

Jihyun Kim, a researcher at Shinyoung Securities, said, "M83 is accelerating its global expansion by acquiring Gimpville, a Norway-based VFX company, and expanding into Hollywood projects. The company has secured an initial project order worth 10.5 billion won through collaboration with The Seven, a subsidiary of Japan's terrestrial broadcaster TBS Holdings, and has also completed the establishment of a corporation in Tongzhou, a media content industry cluster promoted by the Chinese government."

Kim continued, "M83 wholly owns PNT Link, a company specializing in the distribution of AI and graphics processing units (GPUs), and has secured major domestic internet platform companies and cloud service providers as clients. Backed by its excellent procurement capabilities, including platinum partner status with ASUS, M83 is expected to secure competitiveness in the AI infrastructure market as the industry grows, serving as a stable cash-generation source within the group."

M83 specializes in the production of VFX for video content such as movies and dramas, as well as immersive content. The company is involved from the planning stage and participates in the entire production process from on-site filming to final transmission. Thirteen supervisors are currently active and are assigned per project, overseeing the overall production process.

On a consolidated basis, M83's first-quarter revenue reached 66.9 billion won, marking a significant increase compared to the same period last year. On a separate basis, revenue recognition increased along with project progression, and the company succeeded in turning a profit through process optimization.

Kim explained, "M83, together with its R&D subsidiary Dblat, is evolving into a content technology platform and has strengths in producing deepfake and virtual human content based on generative AI. The company plans to sell its proprietary solution, which maximizes content production efficiency using AI and reduces production costs through shortened timelines, as a software-as-a-service (SaaS) offering, enabling a shift toward a software company with recurring revenues."

Kim added, "By combining AI content production technology through Dblat, AI infrastructure capabilities via PNT Link, and existing VFX production expertise, M83 is building a value chain that covers the entire content industry. Over the mid- to long-term, whether the company successfully transforms into a content technology platform providing AI-based content creation solutions and infrastructure will be the key factor in its corporate value reassessment."

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