DAISHIN SECURITIES analyzed on the 30th that Contentree JoongAng is ready for simultaneous airing with its old work upon the lifting of the ban and has considerable experience. It raised the target price from the previous 14,000 won to 17,000 won while maintaining its investment opinion of 'buy'. Contentree JoongAng's closing price on the previous trading day was 11,310 won.
This year, the viewership rate of major dramas produced by Contentree JoongAng on JTBC is 7.6%, which is relatively high. 'The Tale of Lady Ok' was released simultaneously with Netflix, recording a viewership rate of 13.6%, while 'The Art of Negotiation' scored 10.3% and 'Heavenly Ever After' recorded 8.3%.
On the 31st, 'Good Boy' will premiere, with its production scale estimated to be the largest in history for Contentree JoongAng. Kim Hoi-jae, a researcher at DAISHIN SECURITIES, noted, "An above-average recoup rate is expected, and it is projected that about 6 to 8 billion won in profits will be generated solely from Good Boy." The recoup rate refers to the revenue ratio recovered from content supply compared to production expenses.
Last year's operating profit is expected to have turned to a surplus of 6 billion won. Kim noted, "SLL acquired a 23% stake in Studio Slam, which produces entertainment shows like 'Culinary Class Wars' and 'Sing Again,' in 2021, and increased it to 53% last April, with plans to secure 100% by 2029."
Contentree JoongAng's library consists of over 130 titles, of which 65 are works from the past three years that are ready for immediate sale upon the lifting of the ban in China. Even with a sale price of 500 million won per work, profits from old works would reach about 30 billion won.
Kim noted, "Simultaneous airing with global over-the-top (OTT) services is at a level of 6 to 10 titles annually, and if just two tentpole films worth 30 billion won are sold for simultaneous airing in China, profits of around 40 billion won would be generated." He added, "Tencent, the second-largest OTT in China with 120 million subscribers, has participated as an investor in SLL, Contentree JoongAng's production subsidiary, allowing for quick responses upon the lifting of the ban."