(Photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Yuanta Securities presented CJ ENM's target price of 110,000 won and investment opinion as 'buy'. It is expected that its performance will improve sharply this year and next year.

Yuanta Securities said, "CJ ENM's estimated consolidated sales this year are expected to rise 12.9% year-on-year to 4.9312 trillion won and operating profit to 194.7 billion won, turning into a surplus."

Last year, CJ ENM recorded sales of 4.3684 trillion won and operating profit of -14.6 billion won, below the market consensus and exceeding operating profit. The reverse growth of TV advertising and the widening deficit in TVing, especially in the US fifth season, were notable. However, it showed a positive side as it succeeded in turning into a surplus for the fourth consecutive quarter from the third quarter of last year.

This year's performance improvement point is that more than 25 works will be provided annually, with sales expected to increase 88.4 percent year-on-year as the business environment for the Fifth season is normalized following the end of the strike by U.S. writers and actors.

It is also expected that launching TVing advertising model services and inflow of KBO fandom subscribers will be steep. In the music sector, it is positive that two new artists based on long-term contracts are set to debut this year.

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]