[Click eStock] "Skylife, Undervalued Despite High Dividend Appeal"

[Asia Economy Reporter Kwon Jaehee] Daishin Securities maintained its 'Buy' rating and target price of 15,000 KRW for Skylife on the 5th.

The merger between Skylife and KT has strengthened Skylife's position within the KT Group. On September 1st, Skylife and KT decided to merge SKY TV and Media Genie. SKY TV absorbed Media Genie, with Skylife holding 62.7% and KT's Studio Genie holding 37.3% of the merged entity. Although Skylife's stock price temporarily plunged due to some reports suggesting Studio Genie might become the largest shareholder after the merger, Skylife ultimately became the largest shareholder as expected.

KT's Studio Genie will be responsible for discovering, planning, investing in, and producing content intellectual property (IP). SKY TV will supply content to KT's paid broadcasting services. Tving will provide content to an estimated 4 million OTT subscribers. SKY TV plans to directly produce and supply original variety shows, while KT will plan, invest in, and produce original dramas to be supplied. KT is preparing 10 drama projects for 2022 and 15 for 2023, with plans to continuously develop at least 15 projects annually thereafter.

In particular, SKY TV's flagship channel ENA has benefited from expanded programming and increased advertising rates, creating a favorable environment. Following the ENA original drama , is currently airing, and is scheduled to air on the 5th of next month. also recorded a 3.2% viewership rating for its 4th episode, ranking first in its time slot.

Consequently, ENA channel advertising prices have risen significantly. The 4-episode guaranteed package price for and increased approximately threefold to about 100 million KRW, and the rerun package for immediately after the original broadcast was priced at 50 million KRW for 4 episodes. The newly established Friday-Saturday slot drama also saw its 4-episode package price rise to 80 million KRW, about 2.5 times higher.

Kim Hoejae, a researcher at Daishin Securities, analyzed, "Skylife has risen to the most important position within the KT Group, which is emerging as a major player in the media market. Despite the attractive high dividend of 500 KRW per share (DPS), the current stock price has a price-to-earnings ratio (PER) of only about 6.9 times," calling it a "significant undervaluation."

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