[EQUITIES] ‘CJ E&M to improve this year’
CJ E&M will begin to improve this year especially in the broadcasting sector, said Shinhan Investment on April 16, maintaining a “buy” recommendation and 114,000 won (US$106.39) target price.
Its revenue in the first quarter will rise 12.7 percent on-year to 444.4 billion won and operating profit by 53.8 percent to 35.9 billion won, beating market consensus, said analyst Hong Se-jong.
Operating profit from the broadcasting sector will shoot up 59.9 percent to 32 billion won, said the analyst. Revenue from advertising will step up 9.7 percent while motion picture unit’s operating profit will hike 13.8 percent on the back of “1987: When the Day Comes” and “Keys to the Heart,” added Hong.
In the first quarter increasing revenue from advertisements and in the latter half, subsidiary Studio Dragon’s expanding operating profit will propel the earnings growth, noted the analyst.
Led by sales rights and ads, operating profit from the broadcasting sector this year will surge 47.9 percent from last year, and there still is upward momentum, he said.
By Hwang You-mee (firstname.lastname@example.org)