[Click e-Stock] "CJ CGV Keeps 7,000-Won Target Price...Anticipation for This Year's New Releases"

Daishin Securities stated on the 4th that it is maintaining its target price of 7,000 won and its Buy investment rating on CJ CGV, citing expectations for the release of new Korean and Hollywood series titles this year, after the company delivered its strongest-ever quarterly results.

CJ CGV is set to release multiple Korean and Hollywood series titles this year. Kim Hoejae, an analyst at Daishin Securities, said, "There are 19 series titles scheduled for release this year. Based on the audience numbers of their previous installments, the total comes to 57 million viewers, and based on each series' peak audience record, it reaches 66 million," adding, "Series titles alone could account for half of this year's projected audience." This year's projected total audience is 130 million.

Kim also added, "The Korean film market is expected to recover rapidly as a number of major new releases and series titles, such as 'Humint', 'Hope', 'Tazza: The Song of Beelzebub', and 'Ode to My Father 2', hit theaters."

CJ CGV achieved its highest-ever quarterly profit in the fourth quarter of last year. Revenue came in at 670 billion won, up 145% year-on-year, while operating profit was 68 billion won, up 301% over the same period. The number of domestic moviegoers in the fourth quarter of last year was 31 million, an 18% increase from a year earlier.

Kim analyzed, "Although the profit level has not been large yet because cost efficiencies such as closing loss-making sites are still underway, by 2027 the company will have a structure that can generate 10 billion won in operating profit even with a quarterly audience of around 30 million."

He also noted that if this year's projected audience number is achieved, there is room for the future target price to be raised. Kim said, "If the nationwide audience in 2026 reaches around 130 million (equivalent to 60% of 2019's audience level and 70% of the box office), then solely through an upward revision of the EV/EBITDA multiple, a target price of 9,000 won could be achievable."

This content was produced with the assistance of AI translation services.