, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Table of contents 2
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Large screens Developed market > Comptitition with TV Large screen (IMAX) Emerging market > Apartment housing TV size Large screen (IMAX) Theaters Good content Early stage > Hollywood movies Domestic movie protection Domestic movie growth => rapid market growth Matured stage > # of moviegoers growth Hero, Action movies => maintaining market size Fun "Watching" "Enjoying" movies Movies + Meal/ Amusement/ Relax 3
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Developed (US) Emerging (China) Good content > Competition with TV > IMAX sites Theaters Large screens > Large screen > TV size Fun > IMAX movie > Apartment housing 4
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (x) 4.5 4. 3.5 3. 2.5 2. 1.5 1..5. Korea Iceland Singapore USA Australia France China Turkey (mil) (x) 25 Total moviegoers (lhs) Per capita (rhs) 4.5 2 4. 15 3.5 1 3. 5 2.5 24 25 26 27 28 29 21 211 212 213 214 215 2. 5
, Analyst, 3774 1915, yoonmi.jung@ @miraeasset.comm (#) 25 2 15 1 5 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216E (US$) 5 45 4 35 3 25 2 15 1 5 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 6
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (US$m) (#) (#) 2 18 16 14 12 1 8 6 4 2 Regal Carmike 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 4 35 3 25 2 15 1 5 25 US IMAX sites (lhs) 26 27 28 29 21 US Sites total (rhs) 211 212 213 214 215 6,2 6,1 6, 5,9 5,8 5,7 5,6 5,5 5,4 7
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (%) 5"-59" 4"-49" 3"-39" 1 9 8 7 6 5 4 3 2 4 41 48 51 49 48 47 1 21 211 212 213 214 215 216E (%) 9 8 7 6 5 4 3 2 1 5"-59" 4"-49" 3"-39" 31 3 26 27 3 31 33 21 211 212 213 214 215 216E 8
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com 연립주택 3% 다세대주택 8% 기타 1% 단독주택 34% 아파트 54% (ft2) 2,5 2, 1,5 1, (ft2) 2,8 2,6 2,4 2,2 2, 5 Australia US Canada Denmark Germany France Spain Japan UK China Hong Kong 1,8 1,6 1,4 1,2 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 21 23 25 27 29 211 213 9
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Early stage Matured stage Large screens 1) Hollywood movies 1) # of moviegoers growth Theaters Good content 2) Domestic movie quarter 2) Action/ Hero movies 3) Domestic movie Fun Rapid market growth Maintaining market size (KRW bn) (%) (US$m) BO revenue (lhs) YoY (rhs) (%) 2, 1,8 1,6 BO revenue (lhs) YoY (rhs) 9 8 7 12, 1, 8 7 1,4 1,2 1, 6 5 4 8, 6, 6 5 8 6 4 3 2 1 4, 2, 4 3 2 24 25 26 27 28 29 21 211 212 213 214 215 (1) 25 26 27 28 29 21 211 212 213 214 215 216 2 1
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (백만위안) 7 6 5 국산 영화 해외 영화 4 3 2 1 212 213 214 215 11
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (US$m) 12, US BO (lhs) US attendance (rhs) 11, 1, 9, 8, 7, 6, 5, 4, 3, 2, 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 (mil) 1,6 1,5 1,4 1,3 1,2 1,1 1, (US$) (%l) 9 ATP (lhs) YoY (rhs) 1 8 8 7 6 5 4 6 4 2 3 2 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 (2) 12
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (#) 5 45 4 35 3 25 2 15 1 5 IMAX IMAX DMR 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216E 13
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (JPY bn) (%) 23 BO revenue (lhs) # of moviegoers (rhs) 28 21 26 19 24 17 22 15 2 13 18 11 16 9 14 7 12 5 1 197 1972 1974 1976 1978 198 1982 1984 1986 1988 199 1992 1994 1996 1998 2 22 24 26 28 21 212 214 14
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com 15
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Large screens Theaters Fun Good content "Watching" movies "Enjoying" movies Movie + Meal (Cine de Chef) + Amusement (4DX) + Relax (Temper) + Experince!... 16
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com (unit) 4 35 3 35 (#) 25 2 Screen (lhs) Country (rhs) 233 223 45 35 25 2 15 15 1 87 14 25 1 5 6 2 213 214 215 212 213 214 215 1Q16 4 5 15 5 17
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com 18
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Company Analysis 19
Company update Korea / Entertainment 2 June 216 BUY 16, 75,3 Upside/downside (%) 4.8 KOSDAQ 698.45 2,917 61,5-95, 21.3 19.1 Forecast earnings & valuation Fiscal year ending Dec-14 Dec-15 Dec-16 E Dec-17 E 1,233 1,347 1,454 1,559 (12.6) 52.7 73.2 113.9 233.4 52.9 77.1 18.4 224.5 54.3 73.5 13.3 5,796 1,43 1,898 2,666 4,248.2 (75.8) 35.3 4.5 6.6 57.4 39.7 28.2 4.7 8.2 7.4 6.4.... 1. 2. 1.8 1.7 16.4 3.6 4.6 6.1 (7.) (3.) (2.2) (4.3) Performance (KRW) Price (LHS) Rel. to KOSDAQ (RHS) 98, 93, 88, 83, 78, 73, 68, 63, 58, Jun15 Sep15 Dec15 Mar16 Performance 1M 3M 12M 11.9 1.1 13.9 12.4 (2.4) 2.1, Analyst 3774 1915 yoonmi.jung@miraeasset.com (%) 16 15 14 13 12 11 1 9 See the last page of this report for important disclosures 2
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Figure 2 수상한 그녀 의 One Source Multi-territory 예시 자료: CJ E&M, 미래에셋증권 리서치센터 21
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Figure 3 분기별 실적 추정 (K-IFRS 연결 기준) (KRW bn) 1Q15 2Q15 3Q15 4Q15 215 1Q16 2Q16E 3Q16E 4Q16E 216E Sales Revenue 293 299 37 385 1,347 314 345 41 395 1,454 YoY (%) 1.6 5.5 7.8 12.9 9.3 6.9 15.2 8.3 2.6 7.9 Media 178 224 228 281 91 225 236 254 283 999 Pictures 66 32 93 48 238 4 63 96 53 252 Music/Performance 49 44 49 57 2 48 45 51 59 23 % of sales Media 6.7 74.7 61.5 72.9 67.5 71.9 68.6 63.5 71.7 68.7 Pictures 22.5 1.5 25.2 12.4 17.7 12.9 18.3 23.9 13.4 17.3 Music 16.8 14.8 13.3 14.7 14.8 15.2 13.2 12.6 14.9 13.9 YoY (%) Media 4.4 6.9 11.2 16. 1.1 26.7 5.8 11.7 1. 9.9 Pictures 32.3 4.3 (.2) 25.5 12.7 (38.8) 99.9 2.8 1.6 5.7 Music 9.6. 9.1 (7.2) 2. (3.) 2.8 2.8 3.8 1.6 Operating profit 9 18 14 12 53 9 21 23 21 73 YoY (%) TP TP TP 24.6 TP (4.1) 17.8 66.7 71.6 38.9 Media 3 2 7 17 6 5 14 9 11 39 Pictures 7 (4) 8 (4) 9 4 5 11 2 22 Music/Performance 2 (1) (1) 1 2 3 7 12 Margin (%) 3.1 6. 3.7 3.1 3.9 2.8 6.1 5.7 5.3 5. Media 1.4 8.8 3.1 6.1 6.6 2.2 5.9 3.5 3.9 3.9 Pictures 9.9 (13.) 8.3 (8.6) 4. 9.4 8.6 11. 4.3 8.8 Music/Performance.6 4.8 (2.4) (1.6).6. 3.7 6.1 12.7 6. Net income 9 13 28 (78) 53 12 21 22 22 77 YoY (%) TP TP (9.2) TP (77.3) (87.1) 66.9 (19.7) TP 45. Margin (%) 3.8 4.2 7.5 (2.2) 3.9 3.7 6.1 5.6 5.5 5.3 자료: CJ E&M, 미래에셋증권 리서치센터 22
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Summary financial statements 214 215 216E 217E 1,233 1,347 1,454 1,559 977 1,19 1,15 1,156 255 328 349 43 268 275 276 289 (13) 53 73 114 (13) 53 73 114 (5) (1) (2) (1) 1 132 31 32 (42) (124) () () (5) 59 13 145 7 6 26 36 233 53 77 18 225 54 74 13 EPS (지배주주지분, 원) 5,796 1,43 1,898 2,666 214 215 216E 217E 3.7 9.3 7.9 7.2 7.2 28.4 6.5 15.3 적지 흑전 38.9 55.7 4,336. (75.8) 35.3 4.5 4,248.2 (75.8) 35.3 4.5 2.7 24.3 24. 25.8 (1.) 3.9 5. 7.3 18.2 4. 5.1 6.6 214 215 216E 217E 1,39 94 969 1,36 34 47 73 11 472 37 319 332 368 431 419 444 5 4 5 5 16 151 153 154 1,318 1,425 1,51 1,56 88 77 85 9 454 581 64 629 776 767 812 841 2,357 2,365 2,47 2,596 581 642 669 686 215 262 237 251 148 176 226 226 218 24 26 29 271 162 164 165 252 131 131 131 19 31 33 34 852 85 833 851 1,59 1,552 1,629 1,737 (4) 9 9 9 1,56 1,56 1,637 1,746 38,97 4,58 42,5 44,848 214 215 216E 217E 195 295 35 399 233 53 77 18 32 32 317 332 (239) (36) (3) (3) (12) (42) (14) (11) (64) (189) (375) (372) (18) (8) (21) (21) (622) (181) (353) (351) 146 (94) 5 14 (96) 5 332 34 47 73 34 47 73 11 214 215 216E 217E 16.4 3.6 4.6 6.1 1.2 2.2 3.2 4.3 1.7 1.2 1.1 1.2 114.6 18.2 16.6 1.9 69.6 64.6 62.6 57.2 (7.) (3.) (2.2) (4.3) (2.6) 38.8 44.4 17.5 23
Company update Korea / Entertainment 2 June 216 BUY 16, 114, Upside/downside (%) 4.4 KOSPI 1,983.4 2,412 96,3-138,5 2.92 19. Forecast earnings & valuation Fiscal year ending Dec-14 Dec-15 Dec-16 E Dec-17 E 1,39 1,194 1,517 1,956 52.1 66.9 84.3 113.7 16. 52.2 58.9 81.6 16.7 51.9 57.1 79.1 787 2,455 2,699 3,74 29.5 211.8 1. 38.6 68.6 51.3 42.2 3.5 11.1 17.7 13.8 11.5.6.3.3.3 3. 6.3 5.1 4.4 4.4 12.9 12.8 15.5 89.9 98.3 1.7 15.1 Performance (KRW) Price (LHS) Rel. to KOSPI (RHS) 141, 136, 131, 126, 121, 116, 111, 16, 11, 96, 91, Jun15 Sep15 Dec15 Mar16 Performance 1M 3M 12M (.4) (2.1) 12.3.1 (5.6) 18.5, Analyst 3774 1915 yoonmi.jung@miraeasset.com (%) 15 14 13 12 11 1 9 See the last page of this report for important disclosures 24
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com 1 (KRW bn) 1Q15 2Q15 3Q15 4Q15 215 1Q16 2Q16E 3Q16E 4Q16E 216E Revenue 258 278 358 3 1,194 314 345 463 394 1,517 Parent 24 22 277 213 896 223 211 37 226 968 Subsidiaries 54 76 88 83 297 91 134 156 167 549 China 24 31 4 38 133 48 6 8 75 263 Vietnam 21 19 22 2 82 27 25 28 26 16 Others 9 26 26 26 83 2 2 2 2 8 % of sales Parent 79 73 77 72 75 7 67 71 65 68 Subsidiaries 21 27 24 28 25 3 33 29 35 32 China 9 11 11 13 11 15 19 18 22 19 Vietnam 8 7 6 7 7 8 8 7 7 7 Others 3 9 7 9 7 6 6 5 6 6 Operating profit 14 9 39 5 67 18 12 41 13 84 Parent 2 7 38 7 72 1 8 39 6 62 Subsidiaries 6 (2) (1) 2 5 8 4 3 7 22 China (3) (2) 1 (3) 1 1 2 2 6 Vietnam 2 5 1 2 1 4 3 2 3 12 Others 6 (5) (3) (1) (2) 3 () (1) 3 4 Net profit 9 12 34 (3) 52 14 7 3 8 59 YoY (%) Revenue 4 23 16 16 15 22 24 29 31 27 Operating profit 51 167 15 (1) 28 22 39 6 167 25 Net profit 179 N/A 46 TP 226 52 (44) (11) (363) 13 Margin (%) Operating margin 5.6 3.1 1.9 1.6 5.6 5.6 3.4 8.9 3.3 5.5 Net margin 3.5 4.3 9.6 (1.) 4.4 4.4 1.9 6.6 2.1 3.9 25
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Summary financial statements 214 215 216E 217E 1,39 1,194 1,517 1,956 527 595 759 1, 512 599 758 956 46 532 674 842 52 67 84 114 52 67 84 114 (17) (16) (16) (16) 4 8 9 11 (5) 14 4 35 73 81 19 19 21 22 27 16 52 59 82 17 52 57 79 EPS (지배주주지분, 원) 787 2,455 2,699 3,74 214 215 216E 217E 13.5 14.8 27.1 28.9 9.5 16.8 26.7 26.1 1.1 28.4 26. 34.9 31.3 211.8 1. 38.6 29.5 211.8 1. 38.6 49.3 5.2 5. 48.9 5. 5.6 5.6 5.8 1.6 4.4 3.8 4. 214 215 216E 217E 35 355 339 389 19 139 76 77 13 3 3 3 137 136 179 223 11 14 18 22 35 64 64 64 95 1,62 1,246 1,449 588 676 865 1,69 75 84 87 91 286 32 294 29 1,255 1,418 1,585 1,839 474 447 561 739 19 192 35 381 161 126 126 226 123 129 13 131 39 526 528 529 313 453 453 453 77 72 74 76 864 972 1,88 1,268 382 421 473 547 9 24 24 24 391 445 497 571 18,48 19,899 22,331 25,837 214 215 216E 217E 147 84 127 112 16 52 59 82 82 19 127 148 33 (77) (127) (145) 15 68 28 (189) (16) (183) (24) (144) (18) (168) (192) (45) 2 (15) (12) 59 16 (7) 93 (7) (7) (7) (7) 66 118 1 86 19 139 76 19 139 76 77 214 215 216E 217E 4.4 12.9 12.8 15.5 1.4 3.9 3.9 4.8 4. 3.8 3.8 3.7 42.3 41.9 37.9 37.5 6.4 58.5 59.8 64. 89.9 98.3 1.7 15.1 3.1 4.2 5.2 7.1 26
, Analyst, 3774 1915, yoonmi.jung@miraeasset.com Recommendations Compliance Notice Distribution of Ratings Target Price and Recommendation Chart (KRW) Stock Price Target Price 111, 11, 91, 81, 71, 61, 51, 41, 31, Jun14 Dec14 Jun15 Dec15 Jun16 Date Recommendation 12m target price 215-7-1 BUY (Initiate) 93, 215-8-12 BUY 16, (Up) 215-9-7 BUY 16, 215-11-11 BUY 16, 216-5-11 BUY 16, 216-6-2 BUY 16, (KRW) Stock Price Target Price 182, 162, 142, 122, 12, 82, 62, 42, Jun14 Dec14 Jun15 Dec15 Jun16 Date Recommendation 12m target price 214-8-29 BUY (Initiate) 7, 214-1-2 BUY 7, 214-11-11 BUY 7, 215-2-27 BUY 78, (Up) 215-3-13 BUY 78, 215-4-6 BUY 78, 215-4-2 BUY 78, 215-5-11 BUY 1, (Up) 215-7-1 BUY 14, (Up) 215-8-12 BUY 14, 215-11-9 BUY 14, 216-1-14 BUY 16, (Up) 216-2-5 BUY 16, 216-4-5 BUY 16, 216-4-11 BUY 16, 216-5-1 BUY 16, 216-6-2 BUY 16,