[Click eStock] Chorokbaem Media, Business Expansion Expected Through Alliance

[Asia Economy Reporter Hwang Junho] Kiwoom Securities predicted that Chorokbaem Media will benefit from content hit revenues and expanded business opportunities through pre-produced IP with the launch of the Creator Alliance. However, they did not set a target stock price.

On the 6th, the Creator Alliance was launched with a total of nine media production companies including Chorokbaem Media, C2 Media, Aurora Media, Victory Contents, Jidam, DK E&M, iHQ, Studio Santa Claus, and Kim Jong-hak Production. This alliance aims for a pre-production system based on Chorokbaem Media's active content investment.

Kiwoom Securities expects that as production companies secure IP, they will establish the most expanded business model utilizing seller dominance in content markets such as metaverse, NFT, and media commerce, in addition to content hit revenues.

Furthermore, Kiwoom Securities anticipates that the paid-in capital increase involving Lotte Home Shopping, Bithumb Korea, YG PLUS, Bucket Studio, and Wemade Tree, as well as the acquisition of Hook Entertainment, will create various synergies with the Creator Alliance, which has successfully strengthened media capabilities with more than 10 productions annually.

Chorokbaem Media also achieved a turnaround, with 2020 sales of 46.7 billion KRW and an operating loss of 8.6 billion KRW (deficit), to cumulative sales of 103.4 billion KRW and operating profit of 5.1 billion KRW (profit turnaround) in the third quarter of this year.

Researcher Lee Namsu of Kiwoom Securities said, "The LCT Observatory and Chorokbaem Food Farm's F&B business are expected to recover from COVID-19, with structural improvements and concentrated elastic deferred demand. The drama sector for this year, reflecting TV dramas Season 2, Seasons 1 & 2, and Coupang Play's , is expected to continue its strong performance in the fourth quarter, leading to the highest-ever consolidated earnings."