[Click eStock] "Studio Dragon Shows Relative Merit"

Hyundai Motor Securities Issues 'Buy' Investment Opinion and Sets Target Price at 100,000 Won... Closing Price on 23rd at 86,500 Won

Studio Dragon's 'Crash Landing on You'

[Asia Economy Reporter Kum Boryeong] Although Studio Dragon's fourth-quarter performance last year is expected to fall short of consensus, an analysis suggests an improvement trend this year.

According to Hyundai Motor Securities on the 28th, Studio Dragon's estimated sales for the fourth quarter of last year are 102.7 billion KRW, and operating profit is 5 billion KRW. These figures represent increases of 1% and 1035.1%, respectively, compared to the previous year.

This outlook falls short of market consensus. This is because only six episodes of the drama "Crash Landing on You" were reflected in the fourth-quarter results last year, fewer than expected, and slots related to captive OCN and tvN were temporarily reduced.

However, this year, Studio Dragon's relative merits are expected to stand out. Yuseongman, a researcher at Hyundai Motor Securities, said, "This year, partnerships with Netflix, including about two Netflix originals, will officially begin, with a total lineup of 30 to 35 titles, including about three tentpole productions. Additionally, the possibility of expanded terrestrial broadcasting slots and the addition and intensified competition of global online video services (OTT) such as Disney+ are increasing content demand, highlighting Studio Dragon's relative merits. With a high possibility of lifting China's 'Hanhanryeong (Korean Wave ban),' if Studio Dragon's content sales to China increase, there is significant additional upside to performance," he explained.

Hyundai Motor Securities gave Studio Dragon a 'Buy' investment rating with a target price of 100,000 KRW. The closing price on the 23rd was 86,500 KRW.