[Featured Stock] Skylife, Attractive Undervaluation and Rising Dividends

[Asia Economy Reporter Lee Seon-ae] On the 6th, Skylife's stock price is on the rise in the early trading session. As of 9:22 AM, it is trading at 9,160 KRW, up 3.85% from the previous trading day. This is interpreted as investors continuing to buy due to its undervaluation appeal as well as an expected dividend per share (DPS) of around 500 KRW.

On this day, Hwang Seong-jin, a researcher at Heungkuk Securities, emphasized, "It is time to re-evaluate Skylife not just as a paid broadcasting platform operator but as a comprehensive content business operator, yet the stock price remains at an extremely undervalued level. The expected dividend per share of about 500 KRW due to the HCN merger effect is attractive."

On the 1st, the merger between Skylife TV and Media Genie was decided. The merger will be conducted 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 corporation is scheduled to officially launch on November 1.

The unification of KT Group's channel business under Sky TV holds great significance 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. It is expected to result in a positive stock price trend as concerns about the separation of the channel business, which had been raised by some, can be completely alleviated." He added, "It will maximize the value as a multiple channel programming provider (MPP) holding 12 channels of the KT Group, and by unifying content production and programming under the recently launched ENA brand, it is judged that not only profitability will improve but also strategic market responses will become possible."

Furthermore, "Going forward, Sky 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 entertainment programs). The scheduling of follow-up works such as 'Good Job' and 'Eoljuka Yeonae Ddawi' is proceeding smoothly, and advertising rates are also showing a clear upward trend, contributing to strengthening channel profitability," he explained.