[Click eStock] "Studio Dragon, Strong Q2 Performance... Greater Growth Expected in Second Half"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 115,000 Won... Closing Price on 6th at 89,700 Won

[Asia Economy Reporter Kum Boryeong] Studio Dragon achieved strong performance in the second quarter, and analysis suggests it will grow even more in the second half of the year.

According to Studio Dragon on the 7th, the second-quarter results recorded an operating profit of 16.9 billion KRW and sales of 161.4 billion KRW, representing increases of 56.3% and 25.9% respectively compared to the previous year.

The star performer was The King: Eternal Monarch. Kim Hoejae, a researcher at Daishin Securities, explained, "The King’s success led to record-high sales." Overseas sales increased by 41% year-on-year to 59.4 billion KRW, marking the highest overseas sales ever.

Since January, Studio Dragon has planned to provide about 20 works to Netflix over three years. They also supply about 2 to 3 original contents annually. According to Kim’s analysis, there is a trend of improving sales and profits as a result. He said, "The average sales per work is 470 million KRW, the highest ever," and "Library sales also reached 161 titles, again the highest ever."

The second half of the year is even more anticipated. The sequel to Secret Forest, which showed outstanding quality, Secret Forest 2, is set to premiere on the 15th. The Netflix original based on a webtoon, Sweet Home, is also scheduled to air in the fourth quarter.

Daishin Securities gave Studio Dragon a 'Buy' investment rating with a target price of 115,000 KRW. The closing price on the 6th was 89,700 KRW. Researcher Kim said, "We are collaborating on production and sales with global online video services (OTT) such as Amazon, Apple TV+, and HBO Max," adding, "We are also pushing to supply original content to Chinese OTTs, with a possibility of closing one deal within the year."