[Click eStock] "CJ CGV, Target Price Maintained at 10,000 Won"

Daishin Securities maintained a buy rating and a target price of 10,000 KRW for CJ CGV on the 26th.

Heejae Kim, a researcher at Daishin Securities, stated, "Netflix's business model is to charge a monthly subscription fee and provide uninterrupted content," adding, "Regardless of production costs, series (dramas) that can keep consumers engaged for a long time are more important than movies." Researcher Kim also said, "Of course, Netflix has movies, but they are a kind of bait product," and explained, "When theatrical releases are made available on Netflix, it is usually after they have sufficiently attracted audiences in theaters, typically following a holdback period of about 45 days, so movies worth watching can be seen in theaters."

The ticket price controversy is expected to be resolved by the richer content lineup in the second half of the year. Ticket prices increased by 1,000 KRW annually from 2020 to 2022. However, only the 2021 increase is considered special, as ticket prices diversified in three instances: February 2014, March 2016, and April 2018. Therefore, the price increases in October 2020 and April 2022 are regular increases, while the April 2021 increase is of a special nature.

In the second half of the year, the recovery of theaters is expected to accelerate with the release of new works and series-focused content. Anticipated titles with a lead time of around 20 months include 'Veteran 2', 'Haerbin', 'Finding the King', 'Resurrection Man', as well as Hollywood blockbuster series such as 'Joker 2', 'Moana 2', 'Gladiator 2', and 'Venom 3'.