[Click e-Stock] "Studio Dragon, Second-Half Results Emerging"

On September 4, Daishin Securities evaluated Studio Dragon, stating that not only is an increase in the number of titles and viewership expected in the second half of the year compared to the first half, but also improvements in production efficiency. The investment opinion remains 'Buy', with a target price of 64,000 won.

The fourth episode of "The Tyrant's Chef," Studio Dragon's first major release in the second half of the year, recorded a viewership rating of 11.1%, significantly surpassing the company's long-term average of 6.3% for its previous works. Despite the dispersion of viewers due to simultaneous airing on Netflix, the drama achieved the highest viewership among this year's titles, earning high praise.

Kim Hoejae, a researcher at Daishin Securities, explained, "The company's operating profit in the first quarter was sluggish at 4.3 billion won because the viewership rating for the major title 'Ask the Stars' peaked at only 3.9%, with an average of 2.4%. This resulted in a penalty on broadcasting rights fees due to insufficient advertising revenue from tvN." He added, "Since 'The Tyrant's Chef' has achieved very strong ratings, it is likely to receive not only the basic broadcasting rights fee but also additional incentives."

The number of titles to be produced this year is expected to reach 25 (with an average of 12 episodes per title), an increase of six compared to the previous year. Considering that an average of 29 titles were produced annually between 2019 and 2023, with an average of 14 episodes per title, there is still ample growth potential. Major titles lined up for the second half include "Typhoon Sangsa" and "Pro Bono," both of which will be aired simultaneously on Netflix; "Mean Love," which will be aired simultaneously on Amazon Prime; Netflix originals "All Shall Be Fulfilled" and "The Price of Confession"; and the Disney+ original "Fragmented City."

Researcher Kim estimated this year's annual operating profit at 34.3 billion won. In particular, operating profit in the second half is projected to reach 32.9 billion won, representing a 646% increase compared to the same period last year. In 2026, the company is expected to produce 27 titles and achieve an operating profit of 52.6 billion won.

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