[Click eStock] "CJ ENM, Top Preference in Media... Target Price Maintained"

Hana Securities evaluated CJ ENM as the top preferred stock in the media sector on the 10th. They maintained a 'Buy' rating and a target price of 110,000 KRW.

CJ ENM's first-quarter revenue increased by 22% year-on-year to 1.15 trillion KRW, and operating profit turned positive during the same period, recording 12.3 billion KRW, surpassing market expectations.

Lee Ki-hoon, a researcher at Hana Securities, explained, "Despite the labor cost structure, which was a factor in two earnings surprises last year, returning to its original level, the first quarter exceeded market expectations. In particular, the commerce segment performed very well with 26.2 billion KRW, driven positively not only by the 'OnStyle Promotion' event but also by the high growth of mobile live commerce."

He continued, "The growth momentum of TVING and Fifth Season is concentrated in the second half of the year. TVING has introduced a paid advertising plan in May, a price increase in June, and the expectation of a Wave merger is becoming more visible. There has never been a case where major global content platforms like Netflix or Disney decided on a price increase without their stock prices rising," he noted. He added, "Fifth Season also aims to exceed the quarterly break-even point (BEP) again in the second half and is performing well in advertising due to recent market share recovery. We continue to recommend it as the top preferred stock in the media sector."