Samsung Securities raised its target price, saying profitability is improving across all institutional sectors of CJ ENM.
On the 6th, Samsung Securities maintained its investment opinion of "Buy (BUY)" on CJ ENM and raised the target price to 94,000 won from 88,000 won. CJ ENM's closing price in the previous trading day was 70,900 won.
Earlier, CJ ENM disclosed that on a consolidation basis in the fourth quarter of last year, it posted revenue of 1.4378 trillion won and operating profit of 86 billion won. Revenue fell 19.6% from a year earlier, but operating profit rose 109.8%.
Choi Min-ha, an analyst at Samsung Securities, said, "In the media platform institutional sector, TV ad revenue fell 25.4%, but revenue increased 17.2% as the consolidation effect of Wavve was reflected."
By business institutional sector, Tving narrowed its losses thanks to advertising revenue growth from the expansion of subscribers to the ad-supported plan and the effect of entering overseas brand channels. Tving's operating loss was 4.1 billion won, the lowest on a quarterly basis to date.
In the film and drama institutional sector, revenue decreased due to the high base effect from supplying the major intellectual property (IP) "Severance S2" in the same period a year earlier, but high-margin distribution revenue was solid, and incentives from global awards for produced works were reflected.
In the music institutional sector, despite the high base a year earlier and the investment burden related to Mnet Plus and the establishment of a new joint venture (JV), performance improved on the back of strong album sales by Lapone Entertainment artists such as INI and JO1 and the results of "MAMA."
The commerce institutional sector also saw operating profit rise 77% thanks to the peak season effect and a higher share of high-margin product categories.
Samsung Securities particularly focused on Tving's growth trend. Choi said, "Although the fourth quarter is an off-season with only part of the KBO postseason reflected, revenue increased from the previous quarter and losses narrowed significantly, driven by growth in subscriptions and ad revenue and expanded overseas brand channel content sales," adding, "In 2026, external growth and profitability improvement will continue, based on expanded supply of new titles to overseas brand channels, strengthened partnership and bundle plans, and integrated ad product operations for Tving and Wavve."