[Click eStock] "Studio Dragon, Benefiting from Expanded Sales in the Chinese Market"

Hana Financial Investment Report: Q2 Operating Profit 17 Billion KRW
Global Competitiveness Up, Earnings and Stock Price Expected to Rise with Simultaneous Broadcast in China

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating on Studio Dragon on the 1st and set a target price of 98,000 KRW. This is based on the judgment that the stock price will show an upward trend as the global competitiveness of Studio Dragon's works increases and sales in China become visible.

Lee Ki-hoon, a researcher at Hana Financial Investment, said, "Studio Dragon's high global competitiveness is confirmed through data-driven box office indicators," adding, "Expectations for sales to China are also rising again."

In the United States, Sky Dance and Hotel Del Luna announced joint planning and production of TV series. Unlike past remake cases where only IP was sold, this is the first time a structure is in place where production costs and profits are shared equally, so it is expected to secure the most important U.S. reference and profit potential.

Second-quarter expected sales and operating profit are estimated to be 127 billion KRW and 17 billion KRW, respectively. Operating profit is expected to increase by 57% compared to a year ago, slightly exceeding the market expectation of 16.1 billion KRW.

With 'The King,' 'Rugal,' and 'Goblin' scheduled on Netflix, it is expected to record the highest operating profit since the third quarter of last year when 'Mr. Sunshine' was scheduled. During the third quarter, tentpole works such as 'It's Okay to Not Be Okay,' Youth Record, and Secret Forest 2 are scheduled. In the fourth quarter, in addition to the Netflix original 'Sweet Home,' based on a webtoon, the popular overseas series 'True Beauty' will also be scheduled.

Looking at OTT box office indicators, 'The King' on Netflix ranks 7th, and 'It's Okay to Not Be Okay' ranks 10th. 'The King' ranks 12th cumulatively, confirming high performance in the global market despite somewhat disappointing ratings domestically.

Furthermore, benefits from simultaneous broadcasting to China are also expected. Researcher Lee Ki-hoon said, "Recently, some dramas have been sold to iQIYI and are being broadcast simultaneously globally except for some countries, increasing the possibility of sales to China," adding, "When simultaneous broadcasting to China occurs, the potential for performance and stock price increase is highest, so continuous attention is necessary."