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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Daishin Securities has set a target price of 100,000 KRW for CJ CGV, citing the company's entry into a stable profit zone as a key reason. The investment recommendation remains "Buy."
In a report released on the 25th, Daishin Securities projected that CJ CGV achieved consolidated revenues of 3.7 trillion KRW and an operating profit of 24.9 billion KRW for Q2. Although revenue decreased by 7% compared to the previous year, operating profit increased by 57%. This marks a significant turnaround for CJ CGV, which had experienced 12 consecutive quarters of losses but has been profitable for the past five quarters since Q2 of last year.
Daishin Securities noted that, as of the 18th of this month, the number of moviegoers in Korea had reached 69 million, a 57% increase compared to the pre-COVID level in 2019. They expect total annual attendance to reach 140 million this year.
The firm also highlighted that CJ CGV's cost-efficiency measures and the integration of CJ Olive Networks have positively impacted profitability. Additionally, CJ CGV's debt ratio, which was 1,100% last year, is expected to decrease to 399% this year.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
