[Click eStock] "Jcontentree Enters Boom Period in Broadcasting Sector"

Increase in Content Production and Broadcasting Following Netflix Original 'D.P.' Airing
Daishin Securities "Jcontentree Target Price Raised from 58,000 KRW to 67,000 KRW"

[Asia Economy Reporter Gong Byung-sun] The broadcasting division of Jcontentree is being evaluated as having entered a boom period thanks to its competitive content. The theater division is also steadily improving, which is expected to have a positive impact on the company's value.

On the 6th, Daishin Securities estimated Jcontentree's third-quarter sales this year to be 130 billion KRW, a 35% increase compared to the same period last year, and operating losses to remain at 4.9 billion KRW for the same period. Although operating losses are still expected, the improvement trend is clear. The broadcasting division's operating profit for the third quarter is estimated to have turned positive at 4.9 billion KRW, and the theater division's operating loss is estimated to have improved by 5.5 billion KRW compared to the same period last year, to 9.6 billion KRW.

The increased production and airing of dramas in the third quarter are expected to have a positive effect on performance. In the industry, it is generally known that the more episodes produced and aired, the higher the sales and profits. Jcontentree has also increased Netflix original and drama production and airing, starting with the drama "D.P." released on the online video service (OTT) platform Netflix in August.

Expectations are also rising for the content lineup. Netflix original content includes "Hellbound" in November, "All of Us Are Dead" next year, and in 2022, "The Uncanny Counter," "Money Heist," and "The Good Detective." For JTBC dramas, "The Person Who Resembles You" starring actors Go Hyun-jung and Shin Hyun-bin, and "Gugyeongi" featuring Lee Young-ae and Kwak Sun-young are in preparation.

Researcher Kim Hoe-jae of Daishin Securities explained, "Unlike the early days focused on JTBC, they are expanding global content for OTT platforms such as Netflix and Disney Plus by securing intellectual property (IP). The reason for the rapid increase in Netflix originals and JTBC dramas after D.P. is that they transformed into a mega studio with 13 production companies by acquiring competitive content producers such as Climax and Production H in mid-year."

(Provided by Daishin Securities)

Jcontentree's theater, Megabox, is also expected to have a positive impact on performance. Daishin Securities estimated that the nationwide audience in the third quarter increased by 16% year-on-year to 20.3 million, and box office sales (BO) increased by 31% to 196.9 billion KRW during the same period. Researcher Kim said, "The release of the movie '007 No Time to Die' means that movies are being released normally," and added, "If the theater division's operating profit turns positive to 22.2 billion KRW next year, a corporate value of at least 320 billion KRW can be assigned."

Accordingly, Daishin Securities maintained its "Buy" investment opinion on Jcontentree. The target price was raised from the previous 58,000 KRW to 67,000 KRW. The closing price on the previous day was 53,400 KRW.

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