[THE INVESTOR] Studio Dragon is drawing expectations as its exports to China will be boosted by the improving Korea-China relations, said Shinhan Financial Investment on Dec. 11, maintaining a “buy” recommendation and raising the target price to 67,000 won (US$61.30) from 53,000 won.
Its fourth-quarter revenue will rise 33 percent on-year to 69.8 billion won and operating profit by 4.9 percent to 8.2 billion won. Reflecting profits from China, operating profit next year will leap 75.6 percent from this year, said analyst Hong Se-jong.
There will be a temporary earnings void as profits from its major drama will be reflected in the first quarter next year but it will soon gain momentum again, and following the Korea-China summit meeting this week, the nation’s major drama production firms’ exports to China will pick up, predicted the analyst.
By Hwang You-mee (email@example.com)