NH Investment & Securities confirmed on the 27th that it will begin a collaboration business with SAMG Entertainment and is expected to validate global expansion expectations. However, it did not provide an investment opinion or target stock price. SAMG Entertainment's previous trading day's closing price was 91,500 won.

Hyundai Motor announces that it joins hands with SAMG Entertainment, which produced the popular animation Catch! Tiny Ping, to launch a large-scale youth marketing campaign on the 8th. The photo is the Hyundai Motor x Tiny Ping main image. /Courtesy of Hyundai Motor

SAMG Entertainment reported revenue of 37 billion won and operating profit of 7 billion won for the second quarter of this year. Revenue increased by 52.3% compared to the same period last year, and the operating profit returned to black.

Baek Joon-ki, a researcher at NH Investment & Securities, noted, "This year's expected operating profit is projected to be 27.2 billion won, indicating a clear turnaround," adding, "Following the success of the movie 'Love’s Hachu Ping,' both toy and licensing revenues have significantly increased, and the collaboration business with SME's artist aespa is expected to contribute to performance growth."

In particular, SAMG Entertainment's first-quarter sales from its Guangzhou subsidiary in China reached 8 billion won, showing substantial growth compared to the same period last year. Researcher Baek analyzed that this is due to the effect of the airing of 'Catch! Tiny Ping' Season 4 and the success of 'Metal Card Bot.'

Furthermore, they stated, "Interest in the expansion of domestic licensing businesses has increased in addition to recent growth in China," and added, "As it builds references with major corporations, such as the collaboration with Hyundai Motors in the second quarter, it is recovering its status as a blockbuster intellectual property (IP) corporation."

They projected that this year revenue will reach 150.7 billion won, with an operating profit of 27.2 billion won. Revenue is expected to increase by 29.4% compared to the same period last year, and the operating profit is anticipated to turn back to black.

Researcher Baek stated, "Starting from the third quarter of this year, we plan to launch planned MD and content in collaboration with SME's aespa and Hearts2Hearts," and added, "The synergy from the collaboration between both companies is expected to expand in the future, and from SAMG Entertainment's perspective, SME is anticipated to be the optimal partner in its global expansion strategy."