[Click eStock] Skylife, KT Group Channel Operation Is Mine... Extremely Undervalued

[Asia Economy Reporter Lee Seon-ae] Heungkuk Securities announced on the 6th that it maintains a buy rating and a target price of 13,000 KRW for Skylife. Hwang Seong-jin, a researcher at Heungkuk Securities, emphasized, "It is time to reevaluate Skylife not just as a pay-TV platform operator but as a comprehensive content business operator, yet the stock price remains extremely undervalued," adding, "The expected dividend per share (DPS) is also attractive at around 500 KRW due to the merger effect with HCN."

On the 1st, the merger between Skylife TV and Media Genie was decided. The merger will be carried out in the form of Skylife TV absorbing Media Genie, with the merged entity’s shares held 62.7% by Skylife and 37.3% by Studio Genie. The merged company is scheduled to officially launch on November 1. Within the KT Group’s media value chain, Studio Genie will be responsible for discovering, planning, investing in, and producing drama-centered content IPs; Skylife TV will handle variety show-centered program production and overall content channel distribution; and TVING, which will merge with Season, will serve as the OTT platform.

The unification of KT Group’s channel business under Skylife TV holds significant meaning in clearly establishing Skylife’s position as the overseer of KT Group’s channel business. Researcher Hwang said, "In the long term, this will be a very important turning point for Skylife to leap forward as a comprehensive media content company, not just a satellite broadcasting-centered platform operator," and added, "It is expected to lead to a positive stock price trend as concerns about the separation of the channel business, which had been raised in some quarters, can be completely dispelled." He also stated, "It is judged that the value as a multiple channel programming provider (MPP) holding 12 KT Group channels will be maximized, and by unifying content production and programming under the recently launched ENA brand, not only profitability will improve but strategic market responses will also become possible."

Furthermore, he explained, "Going forward, Skylife TV is expected to further maximize channel value through aggressive investment and original content acquisition strategies (over 500 billion KRW investment in the next three years, securing about 30 dramas, producing 300 variety shows)," adding, "The scheduling of follow-up works such as 'Good Job' and 'Eoljuka Yeonae Ddawi' is progressing smoothly, and advertising rates are also showing a clear upward trend, contributing to strengthening channel profitability."