[Click e-Stock] "ContentreeJoongAng Expected to Earn Up to 8 Billion Won from Good Boy Alone"

On May 30, Daishin Securities analyzed that ContentreeJoongAng is expected to see a turnaround in its performance, driven by drama production, content distribution, and the rising value of Megabox.

Kim Hoejae, a researcher at Daishin Securities, stated, "We apply the SOTP (Sum-of-the-Parts) method, which combines drama production, content distribution, and Megabox value, and raise our target price by 21% from the previous level to 17,000 won," adding, "This reflects an upward revision of our 2025 earnings estimates."

ContentreeJoongAng's operating profit for 2025 is expected to reach 17.1 billion won, turning profitable. This represents an increase of 64.5 billion won compared to the previous year. Among its subsidiaries, SLL is expected to post an operating profit of 17.7 billion won, also turning profitable, while Megabox is projected to reduce its losses to 4.4 billion won.

The high viewership ratings of JTBC dramas are a key factor behind the positive outlook. Kim noted, "The viewership ratings of major JTBC dramas produced by ContentreeJoongAng in 2025 reached 7.6%, significantly exceeding the long-term average of 4.7%," and highlighted that major titles such as (13.6%), (10.3%), and (8.3%) recorded strong ratings. In particular, and are also being aired simultaneously on Netflix, which is expected to increase the recoupment rate (production cost recovery rate) by 3 to 5 percentage points above the average.

JTBC's , which will premiere on May 31, is estimated to be the largest-scale production in ContentreeJoongAng's history. In addition to simultaneous domestic broadcasts on Netflix, Disney+, and Coupang Play, a global simultaneous release through Amazon Prime is also planned. Kim analyzed, "We estimate that alone will generate a profit of approximately 6 to 8 billion won."

The overseas subsidiary Wiip is also recovering rapidly. Wiip is expected to turn profitable this year with an operating profit of 6 billion won, with an estimated 1 billion won in the first quarter and 5 billion won in the second quarter. Kim explained, "This is due to the supply of the major title, which is a lead deal, a blockbuster, and in its third season, with four episodes supplied in the first quarter and seven in the second quarter, resulting in very high profitability."

The company's capabilities in variety show production are also expanding. SLL acquired a 23% stake in Studio Slam in August 2021 and increased its stake to 53% in April, with plans to secure 100% ownership by 2029. Studio Slam is scheduled to produce a total of four variety shows this year, including (Netflix), , and (JTBC). Kim assessed, "Through the acquisition of Slam, the company has diversified its genres beyond dramas and films to include variety shows."

Strategies targeting the Chinese market are also in place. ContentreeJoongAng owns a drama library of over 130 titles, of which 65 produced in the past three years can be sold immediately if the ban on Korean content is lifted. Kim explained, "If each title is sold for 500 million won, profits from older titles alone could reach around 30 billion won, which is equivalent to the combined broadcasting and theatrical profits before the pandemic."

Simultaneous broadcasting with global OTT platforms is also active. Annually, 6 to 10 titles are broadcast simultaneously with platforms such as Netflix, and if just two tentpole titles are aired simultaneously in the Chinese market, profits could reach 40 billion won. Notably, Tencent, China's leading OTT platform with 120 million subscribers, is an investor in SLL, enabling a swift response if the ban on Korean content is lifted.

Even before the ban, ContentreeJoongAng had direct distribution experience in the Chinese market with a variety of shows such as , , and , which is expected to provide strong competitiveness in future expansion into the Chinese market.