[Click eStock] J Contentree, Drama Was Successful but...

On the 25th, a Netflix original 'Hellbound' experience zone was set up at COEX in Gangnam-gu, Seoul. Released on the 19th, 'Hellbound' ranked first as the most-watched TV show worldwide within a day. Photo by Moohonam Mun. munonam@

[Asia Economy Reporter Hwang Junho] Daishin Securities maintained its target price at 81,000 KRW, stating that Jcontentree, which has been supplying blockbuster dramas consecutively, is undervalued.

Since May 2020, Jcontentree has supplied about 20 JTBC-Netflix simultaneous broadcast dramas over three years and signed contracts to supply approximately nine Netflix original dramas.

However, the stock price has been somewhat skewed by short-term evaluations. Due to the box office expectations for and , the stock price rose 153% from 33,900 KRW intraday on August 19 last year to 85,900 KRW on November 22 of the same year. However, after achieved first place upon its release on November 19, the stock price surged up to 23% intraday but closed down 7%. It then fell an additional 27% to 47,650 KRW. also achieved global number one immediately after its release on January 28 this year, causing the stock price to rise up to 7% intraday on the first trading day after the holiday, February 3, but eventually fell 10%.

This year, 24 (+7) to 35 (+18) pieces of content are expected to be produced, marking the largest scale ever.

Kim Heejae, a researcher at Daishin Securities, analyzed, "Even if short-term fluctuations repeat due to expectations and disappointments about the success of works, consistent excellent performance is being shown in an environment where the value of content is increasing amid intensified domestic and international OTT competition. Therefore, active buying is necessary during short-term adjustments."