[Click eStock] CJ CGV Smiles Over Success of 'Odyssey'

KB Securities Raises Target Price
from 5,000 Won to 6,000 Won

On September 8, KB Securities maintained its neutral investment opinion on CJ CGV, while raising its target price from 5,000 won to 6,000 won.

Yonghyun Choi, an analyst at KB Securities, stated, "CJ CGV will continue to focus on profitability-driven management." He cited the stronger-than-expected theater demand, as well as the narrowing of this year’s net loss attributable to controlling shareholders following investment attraction from the 4Dplex National Growth Fund, as reasons for the upward revision of the target price.

In fact, the box office recorded 19.5 million admissions in August, marking a 45% increase year-on-year, and Choi emphasized that demand in September is also expected to remain robust considering the release schedule of major films and the Chuseok holiday. He projected CJ CGV’s operating profit for the third quarter of this year to reach 56.4 billion won, exceeding the market consensus of 43.8 billion won. He said, "The main reason is the increase in audience numbers, as hits such as 'Odyssey' and 'Spider-Man 4,' together with policy support, are driving up theater demand."

Choi also viewed the 220 billion won investment received by 4Dplex from the National Growth Fund positively, saying, "It will reduce financial burdens and is expected to accelerate 4Dplex’s global expansion."

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