[Hidden Market Picks] D&C Media: Korea’s No. 1 web novels, comics player set to ride high

2018.01.10 15:05:25 | 2018.01.25 11:29:13

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As Korea’s No.1 web novel and cartoon provider, D&C Media (Kosdaq: 263720) is expected to continue its rapid growth on a steady stream of new contents that are reaching out to a growing readership at home and abroad.

The company is estimated to deliver an operating profit of 5.4 billion won ($5.05 million) on revenue of 26.8 billion won in 2017. Its operating profit for this year is projected to jump to 8.1 billion and revenue to 37.7 billion won, according to IBK Securities Co on Wednesday.

Encouraged by fast growing popularity of web novels and comics, the content provider went public on the country’s tech-heavy secondary market Kosdaq in August 2017. Its major web novel platforms include Papyrus, L Novel and D&C Books. It has 348 contracted writers and posts 733 works. It generates over 600 new contents every year.

The firm’s strategy of adapting popular web novels into cartoons has been extremely successful in Korea that is set to become the global webtoon powerhouse. The country’s market for so-called novel comics, which amounted to 200 billion won in 2013, is expected to reach 800 billion won this year.

D&C Media, which has focused more on web novels, has so far released about 10 web comics and plans to add 20 more in 2018.

It also aims to make further headway in the worldwide market. It launched two webtoons for the global audience last year and expects to release five more this year.

The company is considering turning some of its hit contents into game, movie and TV adaptations in the future.

In April 2017, it received financial backing from Podotree, a content-providing affiliate of Kakao Corp., Korea’s largest messaging app operator. Podotree is currently D&C Media’s second largest shareholder with a 18.39 percent stake.

IBK Securities’ price target for D&C Media is 14,300 won. Its shares closed Wednesday up 14.41 percent at 10,400 won.

For more information, please contact Moon Kyung-joon, analyst at IBK Securities, by phone at 82-2-6915-5776.

You can also visit Financial Supervisory Service (http://englishdart.fss.or.kr/) for company details and latest quarterly report (search code: D&C Media or 263720). For latest trading data, please visit Korea Exchange (http://englishdart.fss.or.kr/) and search under D&C Media or 263720.

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