DS Investment & Securities maintains ‘buy’ investment opinion on CJ CGV… Target is 8,000 won
Quick Look
- DS Investment & Securities announced that it maintained an investment opinion of 'buy' and a target price of 8,000 won for CJ CGV, saying that it expects performance growth due to the recent increase in the number of theater audiences.
- The previous day's closing price was 5,310 won, down 0.75%, and operating profit in the third quarter is expected to record 47.1 billion won, a 102% increase compared to the same period last year.
AI-generated summary
Why It Matters
DS Investment & Securities evaluated in its investment report on CJ CGV that performance growth is expected due to the recent increase in the number of theater audiences.
On the 10th, DS Investment & Securities maintained its investment opinion of 'buy' and target price of 8,000 won for CJ CGV [079160], saying that performance growth is expected due to the recent increase in the number of theater audiences.
The previous day's closing price was 5,310 won, down 0.75% from the previous day.
Researcher Jang Ji-hye said, “The domestic box office is growing due to the success of domestic and foreign movie content,” and added, “The cumulative domestic box office sales from January to August this year recorded 898.3 billion won and the number of viewers was 87.26 million.”
Specifically, it is explained that the combined number of viewers for the five films, ‘The Man Who Lived with the King’, ‘Odyssey’, ‘Spider-Man: Brand New Day’, ‘Hive’, and ‘Hope’ reached 46.3 million, leading to overall box office growth.
He continued, “We expect sales per screen to grow as the box office recovers due to the industry’s strategy of upgrading seats,” and added, “In addition, an increase in the number of visitors will inevitably lead to an increase in high-margin additional sales such as MD (related products), which will further expand the operating leverage effect.”
In addition, he said, “As the number of visitors increases, the competitiveness of theaters as an advertising medium increases, and advertising revenue growth can be expected,” and “CGV, which has a high market share, will benefit the most.”
At the same time, CJ CGV's operating profit in the third quarter is expected to be 47.1 billion won, an increase of 102% compared to the same period last year.
Accordingly, this year's annual operating profit is expected to be 109 billion won, a 14% increase compared to last year (96 billion won).
What to Watch
AI outlook — possibilities, not facts
CJ CGV's operating profit in the third quarter is expected to record KRW 47.1 billion, a 102% increase compared to the same period last year.
Likely · Within months
CJ CGV's annual operating profit this year is expected to reach KRW 109 billion, a 14% increase over last year.
Likely · Within months
Open Questions
- What are the specific factors that will allow the increase in audience numbers to continue in the future?
- To what extent will CGV's market share expansion lead to actual profits?
