April 24, 2024

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[THE INVESTOR] J contentree will expand investments in dramas and operating profit next year will increase dramatically, said Daishin Securities on Aug. 2, maintaining a “buy” recommendation and 8,200 won (US$7.33) target price.

Following the capital increase, it will produce 16 dramas next year and 15 in 2020, raising the share of blockbuster productions every year. This will boost revenue from broadcasting sector in 2019 to 260 million won, up 27 percent from a year ago. Major dramas could make 10 billion won profit per production and its operating profit next year will hike 36 percent to 61.1 billion won. The earnings may be further buoyed by resuming contents sales to China, said analyst Kim Hoi-jae. 

Growth and profits improvement of subsidiary Megabox also is a major factor for earnings advance. The cinema chain added 11 branches in the past two years, and revenue in the third quarter will jump to 110 billion won, up 24 percent on-year, said the analyst.

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