[Click eStock] "NEW, Box Office Recovery and Drama Supply Channel Expansion... Target Price Up"

[Asia Economy Reporter Eunmo Koo] Ebest Investment & Securities has raised the target price for NEW, citing a gradual recovery in the box office market and an expansion of drama supply channels.

On the 29th, Ebest Investment & Securities reported that the movie '#Alive,' released on the 24th, attracted 1.06 million viewers in its first week. The box office audience over the past five days reached 1.5 million, which corresponds to 40-45% of the average late June attendance in previous years. Hyunyong Kim, a researcher at Ebest Investment & Securities, stated, “We believe this signals a positive outlook for the upcoming NEW anticipated release ‘Peninsula,’ scheduled for July 15. If the current recovered audience level is maintained, it is expected to approach the break-even point (2.5 million viewers) in the first week.”

The supply channels for dramas are also expanding. Following the JTBC Friday-Saturday drama ‘Elegant Friends,’ airing on July 10, NEW plans to supply SBS Monday-Tuesday drama ‘Fly, Gaechonyong’ in the fourth quarter. Researcher Kim said, “With coverage extending to tvN, stable increases in production volume across all channels without captive platforms are expected. If the past three years were the period for Studio&NEW to establish itself as a drama production company, the next three years will be a time of simultaneous growth in scale and profitability, culminating in an initial public offering (IPO) and leveling up.”

The investment opinion remains ‘Buy,’ and the target price has been raised by 22% to 5,600 KRW. Researcher Kim explained, “The remarkable recovery in the box office has turned on a green light for the success of the July 15 release ‘Peninsula,’ and with the expansion of the drama supply network to JTBC, tvN, and terrestrial broadcasters, NEW is highly likely to establish itself as a leading production company.”