[Click eStock] "Corpus Korea, Explosive Increase in New License Acquisitions"

Hanyang Securities analyzed on the 8th that Corpus Korea is a hidden earnings stock, showing an explosive increase in new license acquisitions.

Corpus Korea operates with two business divisions: the distribution division, which supplies K-content such as movies and dramas to Japanese broadcasters and OTT platform media, and the production division, which produces works such as dramas and webtoons.

In particular, due to the popularity of "The Youngest Son of a Chaebol Family" and "Youth Lost" in Japan, the company recorded its highest quarterly performance with consolidated sales of 21.5 billion KRW and operating profit of 7.6 billion KRW in the second quarter of this year, representing increases of 205% and 246% respectively compared to the same period last year.

Lee Joon-seok, a researcher at Hanyang Securities, stated in the report that day, "Thanks to the influence of the Korean Wave, which is gaining global prestige, the expansion of K-content distribution business in Japan and the growth through increased sales volume in the new production business guarantee growth, making it a hidden earnings stock."

Researcher Lee said, "New license acquisitions in the first quarter amounted to 9.26 billion KRW, a 72.4% increase compared to 5.37 billion KRW last year, and new license acquisitions in the second quarter were 24.07 billion KRW, a 566.8% increase compared to 3.61 billion KRW last year," adding, "Since distribution sales all start from licenses, the increasing trend in new license acquisitions is expected to play a role in removing factors that suppress stock price rises."

Hanyang Securities forecasted Corpus Korea's annual performance this year to be sales of 57 billion KRW and operating profit of 17.1 billion KRW, which are increases of 94.9% and 87.5% respectively compared to last year.

The researcher explained, "Although the distribution division's strong performance in the second quarter will cause a slight decline in the third quarter compared to the previous quarter, the decline will be reduced by revenue recognition from 'Morning Comes to the Psychiatric Ward'," and added, "The doubts about scalability that have limited the company's stock price rise so far can be resolved by the clear increasing trend of new licenses."

He continued, "The qualitative growth of the production division is also an expected part of the new business," and projected, "Surpassing the record high performance in 2023, definite external growth will be achieved in 2024."