KB Securities said on the 31st that it will raise its target price from 27,000 won to 36,000 won, predicting that a turnaround will begin in the second half of the year for CJ CGV. The investment opinion remained 'buy'.
"CJ CGV's operating profit this year is estimated at a deficit of 109.3 billion won, but its operating profit is expected to be 137.9 billion won and 172 billion won in 2022 and 2023, respectively," KB Securities said.
"The upward revision of profits after 2022 takes into account the increased visibility of recovering demand due to the release of Hollywood masterpieces after the second half of the year.". "The box office's turnaround is slower than expected, but it is recovering compared to the previous year," KB Securities said.
"A strong demand rebound is expected as the delayed movie release schedule will resume in the second half of the year.". KB Securities said, "Next year, we expect to improve our operating profit ratio compared to the previous COVID-19 thanks to continuous efforts to improve the cost structure.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
