[Click eStock] "CJ ENM, Help to Paid Subscribers with Paramount+ Entry... Target Price Lowered"

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Motor Securities maintained a 'Buy' rating on CJ ENM on the 17th but lowered the target price to 185,000 KRW, reflecting earnings adjustments.

Kim Hyun-yong, a researcher at Hyundai Motor Securities, stated, "We are lowering the target price by 10% compared to the previous one, reflecting the downward adjustment of market valuation."

However, he explained the rationale for maintaining the 'Buy' rating by citing ▲ confirmation of platform advancement of TVING ▲ capability to supply over 50 global content titles annually (with about 30% overseas share) ▲ short-term momentum in the entertainment sector due to the comeback of key artists in June and July.

The biggest issue yesterday was the entry of the Paramount+ brand store. Researcher Kim said, "About 400 titles and 2,000 hours of content, including TV series, movies, and animations owned by Paramount+, can now be enjoyed on TVING without additional charges," adding, "This is expected to serve as an opportunity for TVING to level up its paid subscriber count, which had been stagnant for some time." The first joint drama by the two companies, Yonder (directed by Lee Joon-ik), is also scheduled for a global simultaneous launch in the second half of the year.

The long-term integration process with Seezn is also progressing smoothly. It is known that TVING and KT will conduct partnership marketing in early July to allow KT wireless subscribers to access TVING content.

Researcher Kim explained, "It is understood that KT is effectively supporting TVING's marketing. This can also be interpreted as the beginning of the mid-to-long-term integration process between TVING and Seezn."

He analyzed, "Through this, TVING is expected to firmly establish its position as the second-largest platform and acquire content supply capabilities competitive with the number one, Netflix."

He added, "CJ ENM's entertainment business has already achieved combined album sales of 900,000 units with the comebacks of INI and JO1 in April and May, and will continue to form strong momentum with the comebacks of Kep1er in June and Enhypen in July."

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