CJ ENM (035760 KS) Music Business Secures More Global IP
Company Report Sep 24, 2019 CJ ENM (035760 KS) Media/entertainment Music business secures more global IP To own IP of 5 boy/girl group in 1H20 After “Wanna One” disbanded (Dec 31, 2018), CJ ENM launched new band group “X1,” consisting of the highest-ranking members from reality audition show “Produce X 101” in 2019. Sales of X1’s debut album (launched on Aug 27, 2019) exceeded 520,000 units, the highest initial sales volume for a debut album. Although police are investigating a vote-rigging scandal at Produce 101, album sales volume, a leading indicator of fandom, remains solid. Album sales volume of “IZ*ONE,” a girl group consisting of the 12 highest-ranking members from the finale of “Produce 48,” now stand at 800,000 (320,000 in Korea + 480,000 in Japan) in 2019. As IZ*ONE is set to release its third Japanese single on Sep 25, its 2019 album sales in Korea and Japan are likely to hit 1mn. Even if X1 and IZ*ONE release no more albums in 2019, their combined album sales in 2019 will likely reach 1.5mn, about 60% of Wanna One’s 2018 album sales Rating BUY (M) volume in Korea and Japan (2.44mn albums). Combined album sales volume of X1 and Target price 303,000 (M) IZ*ONE in 2020 should easily surpass Wanna One’s 2018 album sales. Current price (Sep 23) W171,500 CJ ENM plans to launch 3 more boy bands from Sep 2019 to 1Q20, including one made Upside potential 77% up of the top-11 trainees of Produce 101 Japan; “TOO” (Ten Oriented Orchestra), composed of the winners from audition show “World Klass”; and one sourced from global auditions of Belief Lab (JV of CJ ENM and Big Hit Entertainment).
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