[THE INVESTOR] J Contentree is drawing expectations as China’s regulations on Korean cultural contents are easing, said NH Investment and Securities on Jan. 23, maintaining a “buy” recommendation and raising the target price to 7,500 won (US$7.00) from 6,400 won. 

Its revenue in the fourth quarter last year surged 112 percent on-year to 123.1 billion won and operating profit reached 12.6 billion won, turning to black and satisfying market consensus, said analyst Lee Hyo-jin.

Copyright profits from dramas last year are estimated to be 12 billion won, and considering that the figures do not reflect that from China, they are fairly high, according to the analyst, who contributed it to aggressive purchases on Netflix. 

If China eases its stance, it could reap additional 8 billion won, and the company’s copyright revenue will reach 46 billion won this year, forecast Lee.

While Studio Dragon is assessed to be worth 2.2 trillion won, J Contentree’s media sector is seriously undervalued only at 400 billion won, added the analyst maintaining a “top pick” rating. 

By Hwang You-mee (glamazon@heraldcorp.com)