[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-293149-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-293149-en":131},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","cj-enm-company-update-2023712","CJ ENM - Company Update - 2023.7.12","","Company update dated 2023.7.12 covering CJ ENM with a focus on segment performance and near-term outlook. Analysts expect a 2Q operating loss of KRW14.5b, driven by continued weakness in media-platform and film & drama while music and commerce show improvement. The target price is cut 18% to KRW81,000, reflecting declines in equity holdings value and downward revisions to earnings forecasts. A quarterly results and forecasts table summarizes sales, margins, and profit expectations.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/cj-enm-company-update-2023712/293149/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/cj-enm-company-update-2023712/293149.png","ImageObject",300,407,{"name":42,"@type":43},"Elsa","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-11","2026-09-17",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",13,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What operating performance is expected for CJ ENM in 2Q?","Question",{"text":63,"@type":64},"The update expects CJ ENM to post a 2Q operating loss of KRW14.5b, missing consensus, with consolidated sales of KRW1.22t (+2.6% y-y).","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"Which divisions are seen as improving versus weakening?",{"text":68,"@type":64},"Music and commerce are expected to improve year over year, while media-platform and film & drama likely remain in operating losses due to cost pressures and production disruptions.",{"name":70,"@type":61,"acceptedAnswer":71},"Why was the 12-month target price reduced to KRW81,000?",{"text":72,"@type":64},"The target price was cut 18% to reflect a lower value of equity holdings and downward revisions to 2H earnings estimates for the media-platform and movie/drama units.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},293149,1789660319,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,111,115,120,123,127],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & 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\n[minha22.choi@samsung.com](minha22.choi@samsung.com)  \n▶ ATA GLANCE  \n\n| Recommend | BUY |  |  |  |  |\n| --- | --- | --- | --- | --- | --- |\n| Target price | KRW81,000 22% |  |  |  |  |\n| Current price | KRW66,400 |  |  |  |  |\n| Market cap | KRW1.5t/USD1.2b |  |  |  |  |\n| Shares (float) | 21,929,154 (51.8%) |  |  |  |  |\n| 52-week high/low | KRW116,100/KRW61,300 |  |  |  |  |\n| Avg daily trading | KRW6.6b/ |  |  |  |  |\n| value (60-day) | USD5.1m |  |  |  |  |\n| ▶ ONE-YEAR PERFORMANCE |  |  |  |  |  |\n|  | 1M |  | 6M |  | 12M |\n| CJ ENM (%) | -14.3 |  | -33.6 |  | -31.1 |\n| Vs Kosdaq (%pts) | -13.8 |  | -46.4 |  | -39.9 |\n| ▶ KEY CHANGES |  |  |  |  |  |\n| (KRW) |  | New Old |  | Diff |  |\n| Recommend. |  | BUY BUY |  |  |  |\n| Target price |  | 81,000 99,000 |  | -18.2% |  |\n| 2023E EPS |  | -3,296 -3,296 |  | nm |  |\n| 2024E EPS |  | 3,034 3,410 |  | -11.0% |  |\n| ▶ SAMSUNG vs |  | THE STREET |  |  |  |\n| No of estimates |  |  |  | 16 |  |\n| Target price |  |  |  | 95,000 |  |\n| Recommendation |  |  |  | 3.8 |  |\n\nBUY★★★: 5 / BUY: 4 / HOLD: 3 / SELL: 2 / SELL★★★: 1  \nCJ ENM (035760)  \nMixed performances, by division  \n\n| • We now believe CJ ENM will report a 2Q operating loss of KRW14 .5b, missing consensus. While media-platform and film & drama divisions likely suffered operating losses again, the music and commerce units likely enjoyed earnings improvement.\u003Cbr>• The music business probably enjoyed a solid performance as stars such as Zerobaseone became more active. Concerns about 2H operating results atthe media platform unit and consolidated subsidiary Fifth Season have yet to dissipate.\u003Cbr>• We cut our target price by 18% to KRW81,000 to reflect: 1) a drop in the value of CJENM’s equity holdings; and 2) downward revisions to our earnings forecasts for the media platform division and film & drama unit. |  |  |  |  |\n| --- | --- | --- | --- | --- |\n| WHAT’STHE STORY?\u003Cbr>2Q preview: We now believe CJ ENM will post 2Q results that show consolidated sales of KRW1 .22t (up 2.6% y-y) and a y-y turn to an operating loss of KRW14 .5b (far underperforming consensus, which has the firm reporting an operating profit of KRW5b).\u003Cbr>• Media/Platform: Thanks to strong seasonality, TV ad sales likely shrank only 12.4% y-yin 2Q vs 29.3% y-y in 1Q. Meanwhile, at Tving, we believe subscriber numbers grew to around 3 .5m on strengthening customer loyalty and the shutting down of illegal streaming site “noonoo TV”. Yet, some losses were likely unavoidable due to heavy amortization costs for Tving original content Duty After School (Part 1 released on Mar 31, Part 2 on Apr 21) and Island (Part 1 on Dec 30, and Part 2 on Feb 24).\u003Cbr>• Movie/Drama: As for CJ ENM’s movie/drama operations, we believe: 1) Studio Dragon saw operating profit contract y-y; and 2) Fifth Season incurred another operating loss, albeit smaller q-q, since the consolidated subsidiary released no content in 1Q but one piece of a TV series and two films in 2Q.\u003Cbr>• Commerce: At the commerce division, gross sales likely did not grow y-y, but earnings likely improved y-y thanks to a focus on the bottom line.\u003Cbr>• Music: At the music unit, performers at several subsidiaries released new albums—a fourth EP in May by Enhypen (consolidated subsidiary Belift Lab; 52% stake), a fourth EP in April by Kep1er (Wakeone), and singles by JO1 and INI (Lapone Entertainment) in Japan.\u003Cbr>(Continued on the next page)\u003Cbr>SUMMARY FINANCIAL DATA |  |  |  |  |\n|  | 2022 | 2023E | 2024E | 2025E |\n| Revenue (KRWb) | 4,792 | 5,033 | 5,556 | 6,163 |\n| Operating profit (KRWb) | 137 | 65 | 247 | 340 |\n| Net profit (adj) (KRWb) | -177 | -98 | 86 | 209 |\n| EPS (adj) (KRW) | -5,476 | -3,296 | 3,034 | 7,282 |\n| EPS (adj) growth (% y-y) | nm | nm | nm | 140.1 |\n| EBITDA margin (%) | 29.9 | 27.7 | 29.9 | 29.7 |\n| ROE (%) | -3.3 | -2.1 | 2.0 | 4.6 |\n| P/E (adj) (x) | n/a | n/a | 21.9 | 9.1 |\n| P/B (x) | 0.6 | 0.4 | 0.4 | 0.4 |\n| EV/EBITDA (x) | 3.8 | 3.","cbCair8Ui3cbEcJz","https://ap.wps.com/l/cbCair8Ui3cbEcJz","pdf",879093,14,"English","# ATA GLANCE\n## ONE-YEAR PERFORMANCE\n## KEY CHANGES\n## SAMSUNG vs THE STREET\n# WHAT'S THE STORY?\n## 2Q preview by division\n# SUMMARY FINANCIAL DATA\n# COMPANY UPDATE\n## Music division outlook\n## Media platform and Fifth Season concerns\n## Cutting target price\n## Table 1. Quarterly results and forecasts","[{\"question\":\"What operating performance is expected for CJ ENM in 2Q?\",\"answer\":\"The update expects CJ ENM to post a 2Q operating loss of KRW14.5b, missing consensus, with consolidated sales of KRW1.22t (+2.6% y-y).\"},{\"question\":\"Which divisions are seen as improving versus weakening?\",\"answer\":\"Music and commerce are expected to improve year over year, while media-platform and film \\u0026 drama likely remain in operating losses due to cost pressures and production disruptions.\"},{\"question\":\"Why was the 12-month target price reduced to KRW81,000?\",\"answer\":\"The target price was cut 18% to reflect a lower value of equity holdings and downward revisions to 2H earnings estimates for the media-platform and movie/drama units.\"}]","CJ ENM - Company Update - 2023.7.12 | PDF",35]