[Click eStock] "Contentsree Joongang, Potential Momentum Recovery in the Second Half"

NH Investment & Securities analyzed on the 23rd that Contentree Joongang has the potential to regain momentum in the second half of the year.

Lee Hwajeong, a researcher at NH Investment & Securities, stated in a report on the same day, “Due to prolonged poor performance and lack of momentum causing disappointment, the current market capitalization of the company reflects only the operating value of the theater division.” However, she added, “With highly anticipated releases such as ‘Hellbound 2,’ benefiting from the success of the previous work, and ‘In the Forest, No One is There,’ which has received favorable reviews from major critics, there is a high possibility of box office success, indicating a strong potential for momentum improvement in the broadcasting division.”

She also explained, “Moreover, the stock price trend of Netflix, a leading company in the upstream industry, is positive,” and described Contentree Joongang as “a business operator expected to regain market interest.”

The broadcasting division had seen almost no market interest in the K-content industry due to prolonged unfavorable business conditions and the absence of global hits. She analyzed, “However, in the second half of the year, the release of the next seasons of existing global mega-hits such as ‘Squid Game’ and ‘Hellbound’ is scheduled,” adding, “This period is expected to see a gradual recovery in market interest toward content providers as well as a gradual growth in performance.”

Regarding theaters and indoor playgrounds, she evaluated that they are quietly growing amid indifference. She forecasted, “With the change in movie viewing patterns strengthening the polarization of box office success by title, the release of highly anticipated works such as ‘Joker 2’ and ‘Veteran 2’ is scheduled for the second half of the year,” adding, “The seasonal peak effect will also strengthen, leading to expected performance growth and momentum recovery.”

Regarding indoor playgrounds, she analyzed, “Expansion into Southeast Asia is underway together with Lotte Mall,” emphasizing, “It is establishing itself as the number one indoor playground operator in Asia, and attention should be paid to the strengthening of mid- to long-term growth drivers.”