CJ ENM’s multichannel network business has great growth potential, said Hanwha Investment and Securities on Feb. 27, maintaining a “buy” recommendation and target price of 300,000 won (US$268).
Considering that MCN business both at home and abroad is being reshuffled to be dominated by a few major operators, DIA TV’s mid- to long-term growth perspective is very bright, said analyst Kim So-hye.
DIA TV has become the largest in Korea with 200 million YouTube subscribers, over 1,400 teams of creators and 2 billion won from monthly contents viewing. It has been prompting fast growth of the company’s digital advertising revenue, and could be a media commerce ready to expand on the global stage, said the analyst.
Half of its views come from overseas, and the fact that it has secured traffic from global creators and users is meaningful, Kim said. With comparison to UUUM, a huge success in Japan, and Sandbox, which recently has won outside investment, DIA TV is worth between 200 billion won and 500 billion won, estimated Kim.
Meanwhile, even excluding Studio Dragon’s contribution to earnings, CJ ENM’s digital advertising business will grow faster than those of its peers. It has beaten market growth every quarter, but stocks are gravely undervalued at 17 times its price-earnings ratio, underlined the analyst, maintaining a “top pick” rating among the media industry.
By Hwang You-mee (firstname.lastname@example.org)