Kiwoom Securities maintained its target price of KRW 24,000 on the 1st, predicting that NEW will benefit significantly from the partnership over the next five years by signing a contract with Disney Plus.
"In the first quarter of this year, sales rose 3.6% year-on-year to KRW 30.8 billion and KRW 1.5 billion compared to last year as movies were supplied to Netflix and dramas aired on SBS were reflected. Production costs linked to sales are likely to increase due to the formation of movies and dramas, which will also lead to a double improvement in operating profits due to the increase in the top line," said Kiwoom Securities.
"As the two dramas of subsidiaries supplied to Disney are estimated to cost a total of 66 billion won and secured a nearly 40% margin, the five-year long-term content partnership will provide sales and profitability at the same time,"
NEW is expected to record consolidated sales of 158.5 billion won (13% YoY) and operating profit of 2.2 billion won (1.4% OPM) in 2021
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
