[Click eStock] "Jcontentree, Positive on Physical Division of Drama Business"

Hana Financial Investment Issues 'Buy' Rating and 39,000 KRW Target Price... Closing Price on 1st at 30,300 KRW

Jcontentree's 'The World of the Married' (Photo by JTBC)

[Asia Economy Reporter Kum Boryeong] Positive evaluations have emerged regarding the physical division of the drama business division of Jcontentree.

According to Hana Financial Investment on the 2nd, Jcontentree announced the day before that it has physically split off all business divisions related to drama investment into a newly established company called ‘Jcontentree Studio.’ After the split, only the film investment division will remain under Jcontentree.

Lee Kihoon, a researcher at Hana Financial Investment, said, "What is noteworthy is that although not confirmed, it was stated in other reference notes that 'after the split, the newly established company from the split is under consideration for acquisition and merger by another affiliate company.'" He explained, "There was a recent media report that JTBC Studio is considering investment attraction, and Hana Financial Investment expects that through the merger of the two studios, the investment and distribution of drama intellectual property (IP) will be unified, while expanding Jcontentree’s shareholding and aiming to increase corporate value."

The second quarter is expected to see progress in the broadcasting division. This is due to the deferred performance of 'Itaewon Class,' the success of 'The World of the Married,' and the pre-sale of 'Ssanggap Pocha' to Netflix. Hana Financial Investment analyzed that Jcontentree’s second-quarter profit is highly likely to exceed the high 7 billion KRW range. The researcher said, "Cautiously, some films have started to be released gradually from June, and during the seasonal peak in July and August, major works such as CJ ENM’s 'Deliver Us from Evil' are expected to become visible with teaser releases."

Hana Financial Investment gave Jcontentree a 'Buy' investment opinion with a target price of 39,000 KRW. The closing price on the 1st was 30,300 KRW.