[THE INVESTOR] Studio Dragon will soon begin to reap revenues from global drama productions in earnest, said KTB Investment and Securities on June 1, raising the target price to 140,000 won (US$130.15) from 100,000 won.
It will produce two original dramas for Netflix in the second half of this year, and has received overseas orders faster than expected. Although the global presale of “Mr. Sunshine,” which is drawing the highest expectations is not yet completed, Studio Dragon’s gross profit margin from its productions could reach as high as 40 percent, according to analyst Lee Nam-jun.
In the fourth quarter, another likely hit “Memories of the Alhambra” featuring Hyun Bin is likely to be sold in advance to a Chinese OTT and revenue from sales rights will be generated, said Lee.
By Hwang You-mee (firstname.lastname@example.org)