April 25, 2024

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[THE INVESTOR] CJ E&M’s operating profit will rise considerably in the next few quarters, said Shinhan Investment on June 27, maintaining a “buy” recommendation and 100,000 won (US$87.92) target price. 

Its second-quarter revenue will rise 11.0 percent on-year to 396.4 billion won and operating profit by 66.4 percent to 23.5 billion won, estimated analyst Hong Se-jong. 

Its strong broadcasting sector will push “other” revenue up 58.8 percent and profits from digital advertising and video-on-demand service will continue to grow, said the analyst. 

“The movie department will remain in red with 1.8 billion won operating loss but loss will substantially shrink as earnings from its hit ‘Confidential Assignment’ will be reflected.”

The entertainment company’s earnings will continue to improve in the third quarter, and as investors are noticing the undervalued stock price, it will rebound in earnest, said Hong.

By Hwang You-mee (glamazon@heraldcorp.com)