[Click e-Stock] "Studio Dragon to Improve Earnings from Q2... Target Price Lowered"

by Kim Youngwon

Published 15 Apr.2026 06:00(KST)

"Further Downside Limited by Increase in Number of Productions"

On April 15, IBK Investment & Securities lowered its target price for Studio Dragon to 53,000 won, anticipating that the company’s first-quarter earnings would fall short of market expectations. The investment opinion was maintained at ‘Buy’.

Yuhyuck Kim, a researcher at IBK Investment & Securities, estimated Studio Dragon’s first-quarter results at 149 billion won in revenue and 9.1 billion won in operating profit, slightly below the market consensus of 10 billion won in operating profit.

[Click e-Stock] "Studio Dragon to Improve Earnings from Q2... Target Price Lowered"

Kim explained, “Although first-quarter results reflect 82 episodes across TV and OTT platforms, including ‘Pro Bono,’ ‘I’ll Give You the Universe,’ ‘My Dearest Bandit,’ ‘Siren,’ ‘How to Become a Building Owner in Korea,’ and ‘Yumi’s Cells 3,’ penalties from the weaker-than-expected ratings of ‘How to Become a Building Owner in Korea’ and ‘Siren’ are expected, which is the main reason for the results falling short of expectations.”

However, as the number of productions increases, the company’s annual performance is projected to grow. The revenue forecast for this year is 649 billion won, with operating profit expected to reach 51.7 billion won. Studio Dragon’s total number of productions this year is anticipated to increase by at least six from the previous year to 25. The release of major titles such as ‘Yumi’s Cells 3’ is also included. Kim added, “It is estimated that about three of the projects currently being planned for North America are likely within the scope for a series order.”

The downward revision of the target price was attributed to sluggish advertising market conditions. Kim said, “As the downturn in the broadcast advertising market is expected to be more prolonged than initially anticipated, we have lowered the target multiple. However, considering the increase in the number of productions this year, growing contributions from TVING’s overseas branded content, and the potential for additional programming in North America and Japan, we believe the possibility of further declines from the current share price level is limited.”