[Featured Stock] CJ ENM Falls 6% Due to Weak Earnings

[Asia Economy Reporter Kwon Jae-hee] CJ ENM is experiencing a decline of over 6% in the KOSPI market on the 11th due to earnings that fell short of market expectations.

As of 9:45 a.m. that day, CJ ENM was trading at 124,200 KRW, down 6.12% from the previous trading day.

CJ ENM's operating profit for the fourth quarter of last year was 29.6 billion KRW, representing a 66.3% decrease compared to the same period last year. Revenue and net profit were 995 billion KRW and 18.9 billion KRW, respectively.

Hyunji Lee, a researcher at Eugene Investment & Securities, analyzed, "CJ ENM's earnings significantly missed market expectations, causing disappointment in the market. The media segment recorded an operating loss of about 9.3 billion KRW, and one-time costs such as incentive payments amounting to 20 billion KRW and increased production costs for TVING originals contributed to the poor performance."

Due to CJ ENM's disappointing results, securities firms have consecutively lowered their target stock prices. Eugene Investment & Securities lowered its target from 220,000 KRW to 180,000 KRW, Hanwha Investment & Securities from 230,000 KRW to 150,000 KRW, and Meritz Securities from 220,000 KRW to 190,000 KRW.

Ki-hoon Lee, a researcher at Hana Financial Investment, stated, "It is still uncertain whether CJ ENM's announcements, such as the establishment of a second new studio and capital raising for global content production, can be achieved without damaging shareholder value. With a significant expected decline in the media division's profits, it is difficult to find a trigger for a rebound."

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