Daishin Securities Co. on the 26th said production cost savings at Studio Dragon are becoming visible. It kept a Buy rating and a target price of 64,000 won. Studio Dragon's previous trading day closing price was 43,300 won.
Daishin Securities Co. forecast that Studio Dragon will post 560 billion won in revenue and 30.3 billion won in operating profit this year. It predicted revenue will rise 1% from a year earlier, while operating profit will fall 17%.
In 2026, revenue is projected at 640 billion won, up 14% from a year earlier, and operating profit at 55.2 billion won, up 82%.
Kim Hoe-jae, an analyst at Daishin Securities Co., said, "The number of productions in 2025 is 21 titles, or 231 episodes, up from a year earlier," and added, "In 2026, more than 25 titles and at least 288 episodes are expected."
In particular, the production cost savings under way since the second half of 2024 are becoming visible, and the operating margin is expected to improve. The 2026 operating margin is expected to be 8.7%, up 3.3 percentage points from a year earlier.
In 2027, revenue is projected at 680 billion won, up 8% from a year earlier, and operating profit at 77.8 billion won, up 41%. Over the same period, the operating margin is expected to be 11.4%, up 2.7 percentage points from a year earlier.
Kim said, "The peak number of productions is rebounding from the bottom, but there is still ample room to rise," and noted, "The performance of the works is also strong."
In fact, since 2014, Studio Dragon's average viewership rating has been 6.3%. Although the rating in the first quarter this year was a sluggish 3.0%, it improved to 5.9% in the second quarter, 8.9% in the third quarter, and 7.5% in the fourth quarter.
It also assessed that a full-scale push into global markets is under way. Three Japan-bound titles launched in 2025, and next year one to two U.S.-bound series orders and one production are scheduled.
Kim analyzed, "If the Chinese market reopens, based on a library of about 280 titles and 70 titles from the past three years, short-term revenue from older titles of about 35 billion won and about 42 billion won in revenue and profit, assuming two simultaneous broadcasts, would be possible."
In that case, sales to China alone could surpass the projected 2025 operating profit, and assuming China sales, the projected 2026 operating profit would be 130 billion won, the report added.