[Click eStock] "RaemongRaein, Annual Production Volume Increased 1.7 Times... Profitability Improvement Trend Expected to Continue"

[Asia Economy Reporter Ji-hwan Park] Daishin Securities on the 15th expected that Laemon Laein's stable content hit performance and production capabilities will continue to drive performance improvement. By injecting IPO funds, the annual production volume, currently at about 6 works, is expected to increase 1.7 times to 10 works, accelerating profitability improvement.

Laemon Laein has a track record of producing hit works such as Sungkyunkwan Scandal and Extraordinary You. Revenue consists of 89% from content production and 10% from IP copyrights such as licensing, VOD broadcasting rights, OST music, and merchandise sales. Researcher Yongju Song of Daishin Securities evaluated, "Since its establishment 14 years ago, it has maintained a solid production record with an average of 2 productions per year, compared to the industry average of 1.6."

Researcher Yongju Song stated, "Last year, Laemon Laein produced 4 dramas, and 6 dramas are currently in production this year, with plans to increase the average annual production volume to 10 works by injecting IPO funds," adding, "they plan to expand their pipeline and scale up sales, and over the past three years, performance has continued to improve with increased drama production volume leading to topline growth and profitability improvement." He also mentioned, "They plan to expand into the new media market and metaverse business in cooperation with the major shareholder, Wysiwyg Studios."

The expansion of online video service (OTT) platforms is seen as an opportunity for small and medium-sized production companies. With the diversification of media channels, demand for various genres and types of content is expanding, creating new opportunities for small and medium-sized production companies with specialized production capabilities. Researcher Song said, "Based on the offering price, the valuation is at a reasonable level, but due to 53.16% of shares being available for circulation after listing and 65.16% available within one month, there is a possibility of short-term negative impact on the stock price."

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