KB Securities analyzed on the 14th that domestic moviegoers are continuing to decline, making the speed of performance improvement sluggish for CJ CGV. The target price was lowered from the previous 6,100 won to 5,000 won, and the investment opinion was downgraded from "buy" to "neutral".
Choi Yong-hyun, a researcher at KB Securities, noted, "The main reason for the target price downgrade is due to a revision in the estimated number of domestic viewers (from 120 million to 105 million), resulting in an 8% decrease in operating profit for this year." He also stated, "CJ CGV is working towards financial improvement through workforce efficiency and the inclusion of Olive Networks."
KB Securities estimated that CJ CGV's revenue and operating profit for the first quarter of this year would be 637.7 billion won and 20.5 billion won, respectively, projecting that the operating profit will fall short of the average forecast of securities firms by 2%.
Researcher Choi stated, "In the institutional sector, a separate operating loss of 34.5 billion won is expected due to the poor performance of moviegoers." He also noted, "In China, the number of viewers is expected to increase by about 43% compared to the same period last year, resulting in an estimated operating profit of 21.3 billion won."
KB Securities analyzed that CJ CGV is seeking growth momentum in the 4D Plex sector. Researcher Choi mentioned, "CJ CGV recently signed a partnership with the American multiplex company AMC and plans to increase the number of special screening rooms to 1,300." He added, "Currently, revenue per screen is estimated to be around 30 million won, and as the proportion of special screening room viewings increases, revenue growth is expected."