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[Alpha Biz= Reporter Kim Minyoung] |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities Co. stressed on Studio Dragon on the 24th that it lowered its short-term earnings estimates due to unfavorable business conditions, but that its performance will improve in the future considering that it continues to make efforts to improve profitability per work. The investment opinion was 'buy' and the target price fell 13% from 70,000 won to 61,000 won. The closing price of the previous trading day is 41,200 won.
NH Investment & Securities saw Studio Dragon's consolidated sales in the first quarter fall 28% from the previous year to 152.1 billion won, while operating profit fell 36% from the previous year to 13.8 billion won. This was estimated to fall short of the consensus. Although the success of the new film is encouraging, it is said that its performance has deteriorated due to a lack of sales of old works.
Although there were only 64 quarterly episodes of the new film, profitability per piece continues to improve.
NH Investment & Securities lowered its target price by lowering its earnings estimate in consideration of the slow recovery of the front industry. Considering the sluggish broadcasting advertising industry, the absence of captive tree slots is likely to continue every year, and considering the Global OTT's annual programming plan, the number of original works to be sold within this year will reverse compared to the previous year.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
