[Market Focus] CJ ENM Rises Over 3% on Hopes for K-Content Policy Boost

Shares of CJ ENM are rising on June 13, amid expectations that the company will benefit from improved Korea-China relations and the K-content promotion policies of the Lee Jaemyung administration.

As of 9:35 a.m. on June 13, CJ ENM was trading at 78,400 won, up 2,300 won (3.02%) from the previous trading day.

NH Investment & Securities maintained its "Buy" rating and target price of 94,000 won for CJ ENM on this day. Lee Hwajeong, a researcher at NH Investment & Securities, said, "CJ ENM is expected to be a standout beneficiary thanks to the more favorable business environment. The improvement in Korea-China relations will benefit the content and music segments, while the new administration's K-content promotion policy will accelerate the growth of TVING."

Lee added, "If the ban on Korean content in China (Hallyu Ban) is lifted, CJ ENM is expected to benefit from both increased exports of K-content (dramas and variety shows) and the resumption of K-pop concerts. In addition, the new administration's policy to foster domestic online video services will further accelerate TVING's growth. The company is also close to securing intellectual property rights for localized artists in China, providing ample momentum for further stock price gains."