[Click eStock] "Ace Story, Diverse Lineup in Second Half... Performance Upward Trend Until 2023"

[Asia Economy Reporter Kwon Jae-hee] DB Financial Investment stated on the 25th that "Ace Story's performance is expected to continue an upward trend due to its diverse lineup," adding that "this is a time to pay attention." No specific investment opinion was given.

Ace Story recorded sales of 30.6 billion KRW and an operating profit of 5.3 billion KRW in the first quarter of this year, achieving the highest quarterly operating profit to date. The strong first-quarter performance appears to reflect titles such as "Extraordinary Attorney Woo," "Big Mouth," "SNL2," and the "Jirisan OST."

Ace Story is expected to maintain solid results in the second quarter as well. Additional revenues from indirect advertising (PPL) related to the progress and airing of the drama "Extraordinary Attorney Woo," recognition of domestic and international rights sales progress for "Big Mouth," and "SNL2" are anticipated to be reflected. With the recognition of domestic rights sales for "Big Mouth," which had not been accounted for until now, profits similar to those of the first quarter are expected in the second quarter. From the second half of the year, starting with the airing of "Big Mouth" in July, some titles such as "Flowers Bloom Even in Sand," "Day of Abduction," "Young Night Show," "Semi-Transparent Man," and "People of the Blue House" are expected to be recognized based on their progress.

Considering these factors, the annual sales for this year are projected to be approximately 110 billion KRW, with an operating profit of 17.6 billion KRW, representing increases of 86.9% and 154.1%, respectively, compared to the previous year.

Shin Eun-jung, a researcher at DB Financial Investment, analyzed, "The stock price was sluggish in the first half of the year due to concerns about performance uncertainty stemming from the absence of major works following Jirisan. However, through this strong performance, we confirmed that quarterly earnings volatility is being reduced, and it appears that the upward trend in performance will continue through 2023, making this a time to pay attention."