April 25, 2024

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[THE INVESTOR] CJ CGV has secured 50 percent market share in the fast-growing Vietnamese movie market, said Mirae Asset Daewoo on Aug. 27, maintaining a “buy” recommendation and 80,000 won (US$71.80) target price.

It has a solid market lead investing strategically and swiftly since it took over Mega Star in July 2011. Its market share in Vietnam is quite significant. China, despite over 20 percent annual growth, is too competitive allowing only 15 percent share for the market leader while Korea where CJ CGV has close to 50 percent has no growth potential, said analyst Park Jeong-yeop.

The Vietnamese movie industry has been growing at an average of 28.8 percent over the past seven years, but worth US$140 million as of 2017. The size is 9 percent that of Korea, and by 2020 the market will expand to US$220 million. CJ CGV is planning to float a branch in Vietnam, temporarily named CGV Vietnam Holdings, which will bring in over 100 billion won in cash, improving its financial structure burdened by 900 billion won net borrowings, he added.

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