 |
(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Yuanta Securities has lowered its target price for ContentreeJoongAng (036420) to 15,000 KRW while maintaining a 'Buy' rating, citing that the company is likely to continue posting operating losses in the third quarter.
In a report published on the 30th, Yuanta Securities explained that while SLL and Megabox are expected to show solid performance, the recovery of ContentreeJoongAng's overseas content production subsidiaries has been slower than anticipated, leading to a sluggish overall performance improvement.
The report also mentioned the company's continued strategy of implementing tiered recoupment rates for in-house drama slots and securing favorable contract renewals with global OTT platforms, which is expected to improve recoupment rates and maintain pre-sales and post-production business models.
For the third quarter, ContentreeJoongAng’s revenue is expected to decline by 16.4% year-on-year to 224.9 billion KRW, with an operating loss of 5.3 billion KRW, significantly missing market expectations. The report attributes this to a decline in episodes aired for in-house content and persistent losses from the company's overseas content production subsidiary, Whip.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
