Samsung Securities evaluated that there has not been a significant recovery in demand for CJ CGV as of the 19th, and the financial situation remains burdensome. The investment opinion remains 'neutral (Hold),' and the target stock price was lowered to 5,200 won. The previous closing price of CJ CGV was 4,740 won.
CJ CGV reported a box office revenue of 407.9 billion won and an audience count of 42.5 million in the first half of this year. These figures represent decreases of 33.2% and 32.5% compared to the same period last year, respectively. It underperformed compared to the previous year, which saw the release of two films exceeding 10 million admissions, 'Parasite' and 'The Outlaws 4.'
Choi Min-ha, a researcher at Samsung Securities, noted that "the box office performance of Hollywood blockbusters was disappointing compared to expectations," and added, "instead, mid-sized films performed well and defended the market."
Due to a lack of hit films, CJ CGV's headquarters revenue in the first half decreased by 28% compared to the same period last year, recording 270.1 billion won, with an operating loss of 48.4 billion won. The deficit widened. Although the businesses in China and Vietnam saw improved profits and efforts were made to reduce fixed costs in most regions to enhance profitability, this did not compensate for the poor profitability at headquarters.
It was analyzed that the direction of CGI Holdings, a regional holding company established in 2019, has not been clearly determined.
The researcher Choi stated, "The atmosphere has improved due to the issuance of movie ticket discount coupons as a part of the government's measures to stimulate cultural and artistic consumption, along with 'My Daughter is a Zombie' and 'F1 The Movie' surpassing 4 million viewers, but there is still no significant recovery in demand due to structural market trend changes," and added, "the financial situation remains burdensome and the target stock price is being lowered in reflection of the first half's performance."