[Click eStock] "Fully Packed Lineup & Disney+ Exclusives... Growing Expectations for Jcontentree"

Completed Drama Scheduling for Mon-Tue, Wed-Thu, Sat-Sun
Faster Collaboration with Disney+ than Netflix
Box Office Audience Recovery Also a Positive Factor

[Asia Economy Reporter Minwoo Lee] Jcontentree's highly anticipated projects are starting to air one after another. As they are also rapidly collaborating with Disney's online video service (OTT) 'Disney Plus(+)', analysts expect future performance improvements.

On the 15th, Daishin Securities maintained its 'Buy' rating and target price of 81,000 KRW for Jcontentree, citing these factors. The closing price the previous day was 50,400 KRW.

Attention was drawn to the resumption of a fully packed schedule throughout the week. The Monday-Tuesday drama, which had been temporarily suspended since March 23, began airing again last month. Except for Fridays, dramas are now broadcast every day of the week.

The swift collaboration with Disney+ was also cited as a positive factor. Jcontentree plans to simultaneously air 'Snowdrop,' Disney+'s first original drama since its entry into the Korean market, on JTBC on the 18th. Kim Hoejae, a researcher at Daishin Securities, explained, "'Snowdrop' is a Disney+ original, so it does not have the accelerated amortization issue that burdened the performance in Q2-Q3 this year. Considering that all 14 existing titles currently available on Disney+ are Jcontentree works, and that 53 titles were supplied to Netflix over the past five years, this is a very rapid pace."

Negative factors also seem to be somewhat alleviated. Although theater performance was expected to be poor due to a surge in COVID-19 cases, the number of theatergoers last month nearly doubled compared to the same period last year despite the spread of the new COVID-19 variant 'Omicron.' With year-end blockbusters such as 'Spider-Man: No Way Home' and 'The Matrix: Resurrections' set to be released soon, concerns about theaters are expected to ease.

Concerns about convertible bonds (CB) conversion also appear to be subsiding. Researcher Kim said, "The stock price was adjusted as the conversion date approached for the 16.2 million shares (9.2% of issued shares) worth 50 billion KRW issued in November last year. However, only 61.5% (5.7% of issued shares), excluding Jcontentree's call option exercise, are subject to conversion, and 5.5 million shares (3.1%) were listed the previous day, leaving only 4.5 million shares (2.6%) remaining."

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