DOCSLIB.ORG

Deliver Us from Social Distancing

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Deliver Us from Social Distancing CJ CGV (079160.KS) Deliver us from social distancing Affected by the prolonging of the Covid-19 crisis, the external environment Company Note │ Aug 22, 2020 surrounding the theater industry remains extremely unfriendly. Accordingly, while CJ CGV is making efforts to improve operating cost efficiency and ※Refer to page 2 for raise capital, such moves are insufficient to offset sales decline at its main ESG index/event tables business. We maintain a Hold rating and TP of W20,000. Hold (maintain) TP (12-mth) W20,000 (maintain) Amid prolonging of Covid-19, facing difficulties in business CP (’20/09/21) W23,050 normalization Sector Entertainment Kospi/Kosdaq 2,389.39 / 866.99 We maintain a Hold rating on CJ CGV. Admittedly, its earnings bottomed out in Market cap (common) US$694.9mn 1H20, when Covid-19 delivered its harshest blow. However, with: 1) its seat Outstanding shares (common) 35.1mn utilization rate remaining limited to 50% due to Covid-19-related social 52W high (’19/11/19) W35,739 low (’20/03/23) W12,835 distancing; and 2) the mid/long-term outlook for the external environment still Average trading value (60D) US$11.3mn unfavorable amid a trend towards online release for Hollywood blockbusters, Dividend yield (2020E) 0.00% the securing of future earnings momentum looks uncertain. Foreign ownership 5.4% Major shareholders We maintain a TP of W20,000, viewing both a 66% increase in its number of CJ Corp & 1 other 38.4% shares stemming from rights issuance and delayed normalization of operations Share perf 3M 6M 12M due to the prolonging of Covid-19 as obvious negatives. However, we hike our Absolute (%) 4.5 62.4 -26.1 2021 OP estimate to reflect the firm’s operating cost streamlining efforts, which Relative (%p) -6.3 6.4 -35.3 exceeded our expectations in 1H20. 2019 2020E 2021F 2022F Sales 1,942 727.6 1,571 1,832 Chg 9.8 -62.5 115.9 16.6 To improve financial soundness, metamorphosis of financial OP 122.0 -288.9 72.4 143.0 structure is needed Chg 57.0 TTL TTP 97.5 CJ CGV is working hard to improve its financial soundness via such efforts as OPM 6.3 -39.7 4.6 7.8 the securitization of theaters, a pre-IPO, and capital increase. Regarding the NP -152.6 -391.1 -119.8 16.6 repayment of total return swap (TRS)-related debt which is to reach maturity in EPS -6,358 -13,867 -3,413 473 Chg RR RR TTL TTP Apr 2021, a portion (W160bn) of the firm’s recent (August) capital increase is to P/E N/A N/A N/A 48.7 be used. However, in order to meaningfully shore up its financial soundness, the P/B 2.8 8.0 N/A N/A generation of profits at the main business is badly needed. For reference, EV/EBITDA 3.1 18.6 3.7 3.0 retained earnings at end-2019 totaled only W15.3bn. With sales recovery ROE -57.6 -210.7 -385.9 -54.4 remaining challenging amid the prolonging of Covid-19, it appears necessary Debt/equity 652.6 1,268.4 2,606.7 3,979.3 for the firm to undertake business slimming efforts (eg, theater restructuring) Net debt 465.6 439.0 702.0 648.0 which go beyond simple improvements to operating cost efficiency. Unit: Wbn, %, won, x Note 1: NP excludes minority interests Note 2: EPS, P/E, P/B, and ROE based on NP (excl minority interests) 3Q20 preview: Tenet not enough Source: NH I&S Research Center estimates CJ CGV is forecast to post consolidated 3Q20 sales of W187.8bn (-62% y-y) and an operating loss of W48.0bn (TTL y-y). While Chinese box offices are seeing a remarkable local movie-driven recovery, in Korea, box office normalization remains difficult despite the release of new films. In particular, weighed upon by the implementation of level 2.5 of social distancing measures, September results are likely to prove especially sluggish despite the opening of major film Tenet. In addition, the 4DX theater, Turkey, and Indonesia businesses are to continue being affected by the spread of Covid-19. Hazell Lee, Analys 822)768-7535, [email protected] CJ CGV www.nhqv.com Summary CJ CGV is the number-one movie theater operator in Korea. It was the first firm to open multiplex theaters in Korea in 1998, and in 2009, it established the world’s first 4DX theater. CJ CGV has also advanced into the movie theater markets in China, Vietnam, Indonesia, and Turkey. In 2019, it booked consolidated sales of W1,942.3bn (+9.8% y-y), a figure that broke down as: domestic 54%, China 17%, Turkey 8%, Vietnam 10%, and 4DX 6%. With the theater industry already in a maturing stage, a key driver for the firm’s sales growth is to be a rise in moviegoers driven by the securing of hit content. We present a Hold rating and TP of W20,000 on CJ CGV. Share price drivers/earnings momentum Downside risks Easing in Covid-19 pandemic and release of new hit titles Sustained external negatives (Covid-19, lack of new content) Fading of Covid-19 crisis and recovering audience numbers OTT players taking greater share of blockbuster movie market ASP hikes driven by increase in ticket prices, per-customer Deteriorating debt ratio stemming from additional borrowings to spending at concessions, and unit ad price per screen overcome financial difficulties Cross valuations (Unit: x, %) Historical valuations (Unit: x, %) P/E P/B ROE Company Valuations 2018 2019 2020E 2021F 2022F 2020E 2021F 2020E 2021F 2020E 2021F Cineplex Inc N/A N/A N/A 1.1 N/A -3.4 P/E N/A N/A N/A N/A 48.7 AMC Entertainment N/A N/A N/A N/A N/A N/A P/B 3.3 2.7 8.0 N/A N/A PVR LTD 215.1 N/A 4.1 4.4 1.8 -34.6 P/S 0.5 0.4 0.9 0.5 0.4 Hengdian Ent. N/A 33.9 5.8 5.0 -11.3 14.7 ROE -49.6 -57.6 -210.7 -385.9 -54.4 J Contentree N/A 22.6 1.5 1.4 -11.8 6.1 ROIC 1.0 4.3 -8.5 2.3 5.0 Source: FactSet, NH I&S Research Center Source: NH I&S Research Center ESG index (Unit: %, years, hours, ‘000TJ, mn tCO2e, mn tons) BOD composition Human resources 2017 2018 2019 Choi Byung-hwan CEO, BOD chair, Remuneration Committee chair Inside Portion of female employees 50.6 54.9 54.5 Lee Dong-hyun Remuneration Committee member Inside Portion of contract workers 0.4 0.0 28.4 Oh Joon Outside Director Recommendation Committee chair Outside Avg service period per employee 6.5 7.3 8.0 Kim Se-hyung Internal Trading Committee chair Outside Avg training hours per employee N/A N/A N/A Hwang Yi-seok Audit Committee chair Outside Environment 2017 2018 2019 Energy consumption N/A N/A N/A Greenhouse gas emissions N/A N/A N/A Recycled water consumption N/A N/A N/A Recycled waste N/A N/A N/A Source: CJ CGV, NH I&S Research Center ESG events – An environmental group pointed out that CJ CGV theaters have yet to conform to the government’s recommendation of cutting down E 2019.03 on the use of disposable materials 2017.07 – Converted 100 temporary workers to regular workers as part of its efforts to improve its employment structure and work environment – Received a corrective order and penalties for unfair practices regarding the selection of an ad agency (for screen ads) and illegal S 2016.10 support for affiliates 2015.07 – Received a corrective order and penalties for unfair practices regarding the allocation of screens for movies distributed by affiliates – No dividend distribution likely in 2020, but until recently, the firm has distributed dividends in spite of it being in the red, as a part of G - its efforts to strengthen shareholders’ value Source: CJ CGV, NH I&S Research Center 2 CJ CGV www.nhqv.com Amid prolonging of Covid-19, facing difficulties in business normalization Maintain Hold We maintain a Hold rating on CJ CGV. Admittedly, its earnings bottomed out in 1H20, rating when Covid-19 delivered its harshest blow, and its share price already reflects related negatives. However, with: 1) its seat utilization rate remaining limited to 50% due to Covid-19-related social distancing measures; and 2) the mid/long-term outlook for the external environment still unfavorable amid a trend towards online release for Hollywood blockbusters, the securing of future earnings momentum looks challenging. Adhere to TP of We adhere to a TP of W20,000. Continuing to use an SOTP-valuation method to W20,000 calculate our TP, we note that: 1) CJ CGV’s overseas markets are in different stages of maturity; and 2) the firm operates a diverse range of businesses (including 4DX). For the headquarters, Turkey, and 4DX businesses, we applied EV/EBITDA multiples to calculate individual operating values. Meanwhile, for the firm’s 71% stake in CGI Holdings, a discount was applied to an operating value calculated using the stake disposal price given to the MBK consortium in Nov 2019. We view both a 66% increase in its number of shares to 35.1mn stemming from rights issuance and delayed normalization of operations due to the prolonging of Covid-19 as obvious negatives.
Load more

Recommended publications
  • 환상적인 비즈니스 모델, Cj Enm Buy Cj Enm(035760)
    CJ ENM(035760) 2018.11.14 2018.11.14 CJ ENM(035760) BUY 환상적인 비즈니스 모델, CJ ENM Current Price: 206,700(11/14) Target Price: 276,840 최근 급락장에서 저가 매수 기회를 찾다! -최근 주가 급락은 동사 펀더멘털에 비해 과도하다 Upside Potential: 33.9% CJ E&M 과 CJ 오쇼핑 합병으로 더욱 강력해졌다 Stock Data -미디어 산업과 커머스 산업 간 시너지 효과 기대 주가(11/14) 206,900 -종합 컨텐츠 기업의 힘은 더욱더 확대될 것이다 시가총액 4 조 5431 억 -디지털 광고 성장에 주목 발행주식수 21926 천주 일평균거래대금 16,375 백만원 다시 열리는 중국 유동주식비율/외국인지분율(%) -중국 민간 미디어사업자들, 최근 들어 한국 콘텐츠 구매에 46.8/19.6 관심 주요주주 -한한령 해제에 대한 기대감 CJ 외 5 인: 42.71% 국민연금: 5.00% 아직 쓰지 않은 카드가 많다 자사주: 10.47% -넷마블과 CJ 헬로 등 보유하고 있는 투자지분 활용 가능성 POSTRADE 3 팀 팀장 윤형식 팀원 김무정 안소윤 김어진 CJ ENM(035760) 2018.11.14 1.기업소개 현재까지 CJ ENM㈜은 2018 년 7 월 1 일 CJ 오쇼핑㈜이 CJ E&M㈜을 흡수합병하고, 사명을 CJ 매출은 ENM㈜으로 변경하여 탄생한 회사이다. 당사의 사업은 크게 4 개 부문으로 구성되어 미디어, 있다. 방송채널 및 콘텐츠 제작을 영위하는 미디어사업, TV 및 온라인 몰(CJmall)을 영업이익은 통한 상품 판매의 커머스 사업, 영화의 제작, 투자, 배급 등의 영화사업, 그리고 음반 커머스 제작 및 유통, 콘서트 등의 음악사업으로 나누어져 있다. 주요 종속회사의 사업으로 씨제이헬로㈜와 스튜디오드래곤㈜가 있다. 씨제이헬로㈜는 케이블 TV, 초고속인터넷과 인터넷전화 (VoIP)와 같은 방송통신서비스를 제공하며, 스튜디오드래곤(주)을 통하여 드라마 콘텐츠 기획 및 제작, 미디어 플랫폼 배급, 유통 및 부가사업을 영위하고 있다.
    [Show full text]
  • New Paradigm in Cinema Industry CJ 4DX : What Is 4DX?
    4DX’s Challenge for Global Hallyu Creation Presenter: Byung-Hwan Choi CEO / CJ 4DPLEX Hallyu, at the Extension Stage 1980s 1990s 2000~ Cultural Hong Kong Japan Korea Trend In Asia Hong Kong Noir Movies Manga, Games, J-Pops Soap Operas, K-Pops, Games, Movies… Initial Before Hallyu stage Leaping Stage Extension Stage Revenue $Bil What is “Hallyu”? Highest Profit 1.2 Hallyu, the Korean Wave, is a Record neologism referring to the increase in the worldwide popularity of 1.0 <Dae Jang Geum> South Korean culture. First Hallyu 0.8 Culture 0.6 Export Culture Import Psy, 0.4 H.O.T Heyday of K-Pop debut in China 0.2 1980 1984 1988 1992 1996 2000 2004 2008 2012 Source: SERI Report (June 19, 2013) 1 CJ, Korea’s Leading Culture Creator CJ’s Hallyu Philosophy as Global Lifestyle company : 3 2 CJ Group, Business Portfolio Global CJ Foodville Global Bio Production Global CJ O Shopping Global CGV 184 stores in 10 countries Brazil, China, Indonesia, China, Indian, Japan, USA, China, Vietnam, Global bibigo Malaysia, USA Philippines, Thailand, Malaysia, Indonesia USA, China, UK, Japan, Turkey, Vietnam Singapore, Indonesia 3 CJ Group, Business Portfolio Sales by Year ($ Bil) 2013 9.2 2012 8.9 2011 8.2 2010 6.9 Weight of overseas sales as % of total sales 4 CJ Group, Business Portfolio Sales by Year ($ Bil) 2017 (exp) 5.0 2012 1.8 2011 1.5 2010 1.2 5 CJ Group, Business Portfolio CJ O Shopping Sales by Year ($ Bil) 2013 2.7 2012 2.5 2011 2.3 2010 1.8 CJ Korea Express CJ O SHOPPING GLOBAL BUSINESS 6 CJ Group, Business Portfolio PR Value from CJ’s Hallyu festivals - MAMA (Mnet Asia Music Awards) 2013 = 2.6 Bil - KCON 2014 = 36 Mil CJ E&M Sales by Year ($ Bil) 2013 1.6 2012 1.3 2011 1.2 CJ CGV & HelloVision Sales by Year ($ Bil) 2013 1.9 2012 1.5 2011 1.2 7 At the Center of Global Movie Industry Global Trends in Movie Industry Global Cinema Industry In Korea, cinema box office and attendance is continuously increasing since 2010.
    [Show full text]
  • The Next Growth Strategy for Hallyu 79
    Lee & Kim / The Next Growth Strategy for Hallyu 79 THE NEXT GROWTH STRATEGY FOR HALLYU A Comparative Analysis of Global Entertainment Firms Yeon W. Lee Seoul School of Integrated Science and Technology [email protected] Kyuchan Kim Korea Culture and Tourism Institute [email protected] Abstract Previous policy approaches on Hallyu have been focused on the role of government engagement, particularly in fostering diversity and equal business opportunities for small-and-medium enterprises (SMEs). However, a more strategic approach to the cultural industries should be implemented by carefully examining the role of the private sector, particularly the role of large enterprises (LEs). his is important because LEs have an overarching and fundamentally diferentiated role in increasing the size of industry through their expansive value-creating activities and diversiied business areas. his study focuses on the complementary roles of SMEs and LEs in facilitating the growth of Hallyu by bringing in the perspective of value chain diversiication and the modiied value chain framework for the ilm industry. By conducting a comparative analysis of the global entertainment irms in the US, China, and Japan, this study reveals how LEs in the global market enter and explore new industries within culture and continue to enhance their competitiveness. By forming a business ecosystem through linking their value-creating activities as the platform of network, this study looks into the synergistic role among enterprises of diferent size and scale and suggests that Korea’s policy for Hallyu should reorient toward a new growth strategy that encourages the integrative network of irms where the value activities of LEs serve as the platform for convergence.
    [Show full text]
  • A Study on the Foodservice Industry in Korea
    CORE Metadata, citation and similar papers at core.ac.uk Provided by KDI School Archives A STUDY ON THE FOODSERVICE INDUSTRY IN KOREA: BY Sojung Heo THESIS Submitted to KDI School of Public Policy and Management In partial fulfillment of the requirements For the degree of MASTER OF BUSINESS ADMINISTRATION 2003 A STUDY ON THE FOODSERVICE INDUSTRY IN KOREA: BY Sojung Heo THESIS Submitted to KDI School of Public Policy and Management In partial fulfillment of the requirements For the degree of MASTER OF BUSINESS ADMINISTRATION 2003 Professor Seung-Joo Lee Copyright by Sojung Heo 2003 ABSTRACT A STUDY ON THE FOODSERVICE INDUSTRY IN KOREA: BY Sojung Heo In spite of the short history of family restaurant in Korea, the industry has achieved robust growth for last 15 years. It has been changing the landscape of the whole foodservice industry by forming new eating-out culture as well as by expanding the market volume of foodservice industry. Initially, the substantial growth has been driven by social, cultural and economical changes such as busier lifestyle, westernization of eating pattern and increase of income level in a booming economy. Then after the Korean financial crisis, the industry as a whole has chased undifferentiated growth strategy to survive under severe competition. However, profitability has been deteriorated because the growth stemmed from multi-store strategy. While most of the family restaurant companies have been focusing on volume without profits leading to financial difficulties, some successful players have captured the market by leveraging their core competence and have evolved from the second movers to market leaders.
    [Show full text]
  • Entertainment&Media
    ENTERTAINMENT&MEDIA CJ E&M CJ CGV CJ HELLOVISION 1 CJ E&M is Asia’s No.1 integrated contents company, offering a variety of contents and platform services, including media, movies, live entertainment, and games. CJ E&M leverages synergies by converging a myriad of contents to lead the global Hallyu with new contents developed for one source for multi-use. 25 Korea’s first Multiplex Theater CGV boasts the largest number of cinemas in Korea and the greatest brand power. CGV has continued to develop a unique cinema experience so that the audience can watch a movie within the optimal environment. Cultureplex offers a new paradigm in movie theaters and is just one of the many innovations that CJ has brought to the movie industry. 41 CJ HelloVision is a leader in the smart platform market, delivering valuable contents and information to customers. CJ HelloVision provides you with advanced services fit for the new media environment. Its products include smart cable TV ‘hello tv Smart,’ digital cable TV ‘hello tv,’ fast speed internet ‘hello net,’ internet home telephone ‘hello fone,’ Korea’s No.1 budget phone service ‘hello mobile’ and the N screen service ‘tving.’ CJ E&M CJ CGV CJ HELLOVISION 2 3 BUSINESS OVERVIEW FINANCIAL HIGHLIGHTS CJ E&M Weight of each business Sales by year (Unit: billion won) CJ E&M Center, 66, Sangamsan-ro, Mapo-gu, Seoul as % of sales www.cjenm.com (As of 2013) 2013 1,716.1 2012 1,394.6 29% Asia’s No.1 Total Contents Company CJ E&M, 2011 1,279.2 45% creating a culture and a trend 12% Media Sales Profit by Year (Unit: billion won) Game 14% CJ E&M is the No.1 total contents company creating culture and trends.
    [Show full text]
  • RENTRAK Worldwide Film Distributors
    RENTRAK Worldwide Film Distributors ABBREVIATED NAME FULL NAME 518 518 Media 757 7-57 Releasing 1211 1211 Entertainment 2020 2020 Films @ENT At Entertainment @MOV @MOVIE JAPAN +me +me 01 DIST 01 Distribution 104 FLM 104 Films 11ARTS Eleven Arts 120D 120 Degree Films 13DIST Les Films 13 Distribution 1A FLM 1A Films 1CUT 1st Cut 1M60FILM 1meter60 Film 1MRFM 1 More Film 1ST INDP First Independent 1stRUN First Run 21ST 21st Century 21ST CENT Twenty First Century Films 24BD 24 Bilder 24FRMS 24 Frames 2Corzn Dos Corazones 2GN 2nd Generation 2MN Two Moon 2ND GEN Second Generation Films 2RIVES Les Films des Deux Rives 2SR 2 Silks Releasing 35MI 35 Milim Filmcilik 360 DEGREE 360 Degrees Film 3DE 3D Entertainment 3ETAGE Productions du 3e Etage 3L 3L 3MONDE La Médiathèque des Trois Mondes 3RD WINDOW Third Window Fims 3ROS 3Rosen 41Inc 41 Inc 42FILM 42film 45RDLC 45 RDLC 4DIGITAL 4Digital Media Ltd 4STFM Four Star Film 4TH 4th & Broadway 4TH DIG 4TH Digital Asia 5&2 Five & Two Pictures 50TH 50th Street 5PM Five Points Media 5STR Five Star Trading 5STRET Five Star Entertainment 6PCK Sixpack-Film 791C 791 Cine 7ARTS Seven Arts Distribution 7FLR The 7th Floor 7PP 7th Planet Prods 7TH ART Seventh Art Production 8X 8X Entertainment A B FILM A.B. Film Distributors A. LEONE Andrea Leone Films A3DIST A3 Distribution AA AA Films AAA Acteurs Auteurs Associés (AAA) AAAM Arts Alliance America AAC Alliance Atlantis Communications AAM Arts Alliance Media Aanna Aanna Films AARDMAN Aardman Animations AB&GO AB & GO ABBEY Abbey Home Entertainment ABCET ABC Entertainment ABCF ABC-Films ABFI Absinthe Films ABH Abhi Films ABKCO ABKCO Films ABLO Ablo ABR Abramorama Entertainment ABS ABS-CBN ABSOLUT Absolut media ACADRA ACADRA Distribution ACAF Acacia Films Acajou Acajou Films ACCDIS Accatone Distribution ACCTN Accatone ACD Academy ACE Ace Films ACHAB Achab Film AchimHae Achim Hae Nori ACM Access Motion Picture Group ACME ACME ACOMP A Company ACONTRA A contracorriente ACROB Acrobate Films ACT/TDT Actions Cinémas/Théâtre du Temple ACTAEON Actaeon Film Ltd.
    [Show full text]
  • CJ CGV Sell (079160 KS ) (Maintain)
    [Korea] Media November 11, 2020 CJ CGV Sell (079160 KS ) (Maintain) Scaling down to survive TP: W16,000 ▲ Downside: -27.1% Mirae Asset Daewoo Co., Ltd. Jeong -yeob Park [email protected] 3Q20 review : Weaker than Consolidated revenue of W 155 .2bn (-68.8% YoY) , operating loss of W 96 .8bn (turn to red YoY ) expected The vicious cycle of plunging demand and an absence of content continued across all markets. As a result, CJ CGV’s fixed-cost burden increased, weighing on earnings. Revenue slumped roughly 69% YoY, hurt by the fall in theater attendance amid the pandemic and the absence of Hollywood content. SG&A expenses fell 29% YoY, as enhanced operational efficiency led to savings (rent and labor). By country, operating losses amounted to W43.3bn in Korea, W19.1bn in China, W8bn in Turkey, and W5.6bn in Vietnam. At the net level, the company recorded a loss of W131.5bn ( net loss attributable to owners of the parent of W100.4bn) due to financing expenses. Remaking of the theater Break -even point needs to be lowered through downsizing business By country, we estimate CJ CGV’s break-even theater attendance at 160mn for Korea, 1.5bn for China, 60mn for Turkey, and 50mn for Vietnam. Compared to our 2020 forecasts, these figures imply increases of 106% for Korea, 180% for China, 41% for Turkey, and 67% for Vietnam. To close the gap with break-even levels, we believe the company needs both: 1) an easing of top-line headwinds (content/pandemic); and 2) a dramatic reduction in theater sites.
    [Show full text]
  • 2016 Csv Report About This Report Contents
    2016 CSV REPORT ABOUT THIS REPORT CONTENTS CJ CSV REPORT REPORTING PERIOD CONTACT INFO. CHAIRMAN’S MESSAGE 2 CJ is leading CSV (Creating Shared AND SCOPE The 2016 CJ CSV Report is published in Value) management to create economic This report contains CJ Group’s activities Korean and English, and it is available on 01 GLOBAL LIFESTYLE COMPANY, CJ and social values through management and performance between January CJ Corporation website (www.cj.net). For CJ MANAGEMENT PHILOSOPHY 6 activities. Since 2015, CJ has been 1, 2016 and December 31, 2016, and more details, please send your inquiries to BUSINESS OVERVIEW 8 annually publishing the CJ CSV Report some performance in 2017 considered the following: GLOBAL STATUS 13 CSV GOVERNANCE STRUCTURE 14 in order to share with our stakeholders significant for reporting. The scope of the direction and performance of CSV reporting covers the activities of CJ 02 CJ CSV MANAGEMENT management. Taking a central role, CJ Group and our nine CJ affiliates (CJ CONTACT CSV MANAGEMENT 18 Creating Shared Value Team formed a CheilJedang, CJ Freshway, CJ Foodville, CJ Corporation ETHICAL MANAGEMENT 20 task force team with the CSV teams of CJ Logistics, CJ O Shopping, CJ CSV Team, 26, Pildong-ro, SAFETY MANAGEMENT 22 Group’s nine affiliates to prepare the OliveNetworks, CJ E&M, CJ CGV and Jung-gu, Seoul, Korea Tel. 82-2-726-8114 www.cj.net ENVIRONMENTAL MANAGEMENT 28 report, and discussed the direction of CJ HelloVision) and two foundations SOCIAL RESPONSIBILITY 30 CSV initiatives and reporting. CJ will strive (CJ Welfare Foundation and CJ Cultural CJ CheilJedang MATERIALITY ASSESSMENT 34 CJ CheilJedang Center, 330, Dongho-ro, to achieve shared growth with society Foundation).
    [Show full text]
  • Homeshopping&Logistics
    HOMESHOPPING&LOGISTICS/INFRA CJ O SHOPPING CJ korea express CJ OLIVE YOUNG CJ EDUCATIONS CJ E&C CJ SYSTEMS CJ POWERCAST 1 CJ O Shopping is the first to start a TV home shopping program in Korea, and has since made history in the Korean distribution industry in a variety of fields. With its competitive products, reasonable prices and leading services, it is rapidly growing into the leading integrated online media shopping company, commensurate with global recognition. 17 As the first logistics company in Korea, CJ korea express has been at the forefront of economic development in Korea for over 80 years. It is rapidly growing into one of the top 5 logistics companies in the world by providing differentiated services in all areas of international logistics, such as contract logistics, parcel delivery services, and its maritime business with the biggest network in Korea. 29 CJ Olive Young is Korea’s leading health&beauty distributor whose differentiated products add value to the shopping experience. It remains on-trend with its diverse and specialist products in healthcare, beauty care and personal care as well as its advanced distribution system. 37 CJ Educations is a specialized education contents provider that creates a new learning culture. It combines IT with outstanding educational contents to build a sound digital education culture. The company delivers a new paradigm of early childhood education by offering innovative educational applications such as the ‘I THINK’ series. 41 CJ E&C creates outstanding spatial value through civil engineering, construction, engineering, and resort development and management. It has established a new business model based on broad construction competencies, the successful business performance of industrial plants, and its unrivaled experiences in complex spaces, such as ‘CJ Foodworld.’ 47 As a specialist IT service provider, CJ Systems provides total IT services such as the development and establishment of information systems, system management and operation, and internet data center services.
    [Show full text]
  • 6 the Development Ofáthe South Korean Film Industry Iná2018
    6 The development of the South Korean film industry in 2018 Korean Film Council Market volume of the 2018 South Korean film industry In 2018, the number of total admissions in South Korean cinemas totaled 216.39 million, 1.6 percent less than the previous year in terms of numbers. This decrease, however, is not significant, as the admissions figure for the past six years has remained relatively stable with slight fluctuations after reaching the 210 million mark in 2013. Film sales have continued the trend of a slight increase (Korean won (KRW) 1.8140 trillion), but this reflects an increase in special screenings and ticket fees, centered on multiplex chains in April rather than the structural growth of the market itself. With the steep decline in population growth, bordering on the negative, and the fact that South Korean film attendance per person is already one of the highest in the world, market growth in the form of film admissions shown in the past is not likely to be observed in the future. The rise of different activities other than films is also a threat to the film industry. In 2018, the digital and online film market, on the contrary, totaled KRW 473.9 billion, an 8.6 percent increase from the previous year. Because the current measurements of the online film market fail to reflect the multitude of services available in the market, the actual size of the online film market in South Korea is expected to be greater than this estimate. In terms of exports, film exports maintained similar levels to previous years.
    [Show full text]
  • Processed Food
    SG/KL NDR: CJ CheilJedang CJ CheilJedang IR Mar 2019 This financial information in this document is consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors only, before the external audit on our 2018 financial results is completed. The audit outcomes may cause some parts of this document to change. Contents I. Company Overview Pg.3 II. Key highlights Pg. 6 III. Food Pg. 7 IV. BIO Pg. 17 V. Feed & Livestock Pg. 24 VI. Appendix Pg. 28 2 I. Company Overview Shareholders’ Stake Revenue Mix (2018) W10.2tn Others 19.9% Feed & CJ Treasury Stocks Livestock Processed Food Corp 21% 2.4% 44.6% 34% National Pension Bio Service 27% 12.5% Foodstuff 18% Foreign Investor 19.8% Jayhyun Lee & related parties * As of 31 Dec, 2018 0.9% * Excluding CJ Healthcare, CJ Logistics Snapshot (Dec 2018) OP Mix (2018) Outstanding Shares 15,054,186 shares W605bn Feed & Livestock Market Cap KRW 4,975bn 9% Bio 32% Food 3M Daily Trading Value KRW12.1bn 59% Foreign Investor Stake 19.8% * As of 31 Dec, 2018 * Excluding CJ Healthcare, CJ Logistics 3 I. Company Overview CJ Group Holding Structure CJ Corp. 47.1% 44.6% 55.0% 96.0% 40.1% 39.0% CJCJ CJ Freshway CJ OliveNetworks CJ Foodville CJ ENM CJ CGV ( 357,298 /2.4%) 40.2% 46.5% 71.3% 53.9% CJ Logistics CJ Seafood Studio Dragon CJ Hello 4 I. Company Overview History Globalization Founded CheilJedang Corp. (the first 1953 Overseas sales account for 44% of total manufacturing business of Samsung Group) revenue of W10.2tn (2018) Commenced Animal Feed business 1970s Launched
    [Show full text]
  • CJ CGV Sell (079160 KS) (Downgrade)
    [Korea] Media CJ CGV Sell (079160 KS) (Downgrade) Far from breakeven TP: W15,000 Downside: 20.2% Mirae Asset Daewoo Co., Ltd. Jeong-yeob Park [email protected] 2Q20 review Consolidated revenue of W41.6bn (-91.4% YoY) and operating loss of W130.5bn (turning to loss YoY); worse than expected CJ CGV fared worse than expected in 2Q20, hurt by a heavy fixed cost burden amid theater shutdowns and the absence of new releases around the world. Revenue plunged 91% YoY, as COVID-19 caused theater attendance to plummet across regions. SG&A expenses fell 51% YoY on improved operating efficiency (reduced lease/labor expenses). By country, operating loss amounted to W70.1bn in Korea, W29.8bn in China, W1.6bn in Turkey, and W8.3bn in Vietnam. Due to financing expenses, net loss came in at W174.9bn (net loss attributable to owners of the parent of W143.2bn). Theater business is far from Demand hit a bottom, but a YoY recovery is unlikely anytime soon breakeven Following global demand contraction in 1H20, the domestic box office recovered 46% MoM in Jul., supported by an increase in new releases. By title, theater attendance was 1.9mn for #Alive (Jun.) and 3.6mn for Train to Busan 2 (Jul.). Blockbuster lineup in 2H20: Tenet (Aug. 26), The King's Man (Sep.), Black Widow (Nov.), and 007: No Time to Die (Nov.) QoQ improvements should continue, but the outlook for YoY performance remains murky, given the lingering impact of the pandemic and the decline in content lineup. Recommendation and valuation Downgrade to Sell (from Hold) and present TP of W15,000 Our target price is based on the sum of the values of the domestic operation (W376.1bn), the stake in CGI (W500.4bn), and the Turkey operation (W156bn), minus net debt (W509bn).
    [Show full text]