[Click eStock] "Jcontentree, Q1 Earnings Shock Expected... Target Price Down"

[Asia Economy Reporter Minji Lee] Ebest Investment & Securities stated on the 20th that an earnings shock is expected for J Contentree in the first quarter, maintaining a buy rating and setting a target price of 34,000 KRW, down 26% from the previous target.

The company's expected sales for the first quarter are 94.1 billion KRW, a 27% decrease compared to the same period last year. An operating loss of 4.7 billion KRW is anticipated, marking a shift to a deficit.

Hyunyong Kim, a researcher at Ebest Investment & Securities, said, "The cinema business is expected to decline by more than 50% compared to a year ago based on market standards, making a significant drop in sales inevitable," adding, "Even if the drama business segment turns a profit, the cinema division is expected to incur a large-scale loss close to 10 billion KRW."

However, performance improvement is expected from the second quarter. Starting with the late May comeback work of actress Hwang Jung-eum, Ssanggap Pocha, weekday dramas are scheduled to air. Researcher Hyunyong Kim explained, "Following Studio Dragon, which currently operates four slots, J Contentree will become a production company operating three slots," and added, "Cinema performance is also expected to show a rebound trend by the third quarter at the latest."

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