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DS Securities Forecasts Q3 Earnings Growth for CJ CGV Driven by Rising Attendance

Consumer Services · Movies/Entertainment · yonhap_finance · 2026-09-09

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DS Securities maintains a 'Buy' rating on CJ CGV, citing a rebound in domestic box office attendance and improved operational efficiency as key growth drivers.

What Happened

Earnings Outlook: DS Securities has maintained a 'Buy' rating and an 8,000 KRW price target for CJ CGV, projecting a 102% year-on-year increase in Q3 operating profit to 47.1 billion KRW. Total annual operating profit is expected to reach 109 billion KRW, representing a 14% growth compared to the previous year.

Growth Drivers: The domestic box office is showing a strong recovery, with cumulative attendance reaching 87.26 million between January and August. The success of key film titles has been instrumental in driving this rebound in theater traffic.

Operational Efficiency: The company’s strategy to upgrade seating and enhance the theater experience is boosting revenue per screen. Increased foot traffic is also driving higher-margin ancillary revenue from concessions and merchandise, alongside a recovery in advertising income.

Market Position: As the dominant player in the industry, CJ CGV is well-positioned to capture the benefits of the box office recovery. Analysts expect the company to leverage its market share to maximize operational profitability in the coming quarters.

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