[Click eStock] "Studio Mir Opens Margin Upside with MOU with Toei Animation"

iM Securities analyzed on the 7th that the possibility of performance improvement for Studio Mir has increased through a memorandum of understanding (MOU) with Studio N, an intellectual property (IP) management company under Naver Webtoon, and Toei Animation, Japan's largest animation production company. No investment opinion or target price was presented.

Recently, Studio Mir signed an MOU with Studio N and Toei Animation to collaborate on the production of a series animation based on the Naver Webtoon original "Gosu." Yoon Yeji, a researcher at iM Securities, said, "The agreement includes the animation adaptation of the webtoon 'Gosu' and is expected to expand to other IPs in the future," adding, "In the three-party joint project, Studio Mir is expected to be responsible for animation production."

Researcher Yoon explained, "Studio N participates as the original IP holder, and Toei Animation is responsible for strategies related to secondary utilization such as game adaptation, merchandise, and serialization of the animation IP," and added, "Since the production costs are shared among the three companies, the rights to the animation IP are also shared."

In particular, Researcher Yoon evaluated this agreement as being in a similar phase to D&C Media in 2022. He said, "D&C Media began full-scale IP utilization business from 2022 and recorded meaningful secondary licensing revenue in Q2 2024 as the first domestic webtoon CP company to do so," and added, "The stock price also rebounded significantly after the animation release in Q1 this year and the game revenue disclosure of 'Nahoneurep' in Q2."

He analyzed, "Currently, Studio Mir receives animation production orders from global OTT platforms and is granted a margin of about 15% of the production cost, but the IP is owned by the global OTT," and said, "Under the current business model, it is difficult to expect margin improvement even if sales expand."

He continued, "The partner company Toei Animation's average operating profit margin over the past three years exceeds 30%, because more than 50% of its total sales come from licensing and merchandise sales," emphasizing, "Studio Mir’s margin upside is expected to open depending on the success of its own IP, the Gosu animation."