It is analyzed that performance momentum will continue in the second half of the year due to rapid growth of NCT, a multinational boy group.
Yuanta Securities maintained its 'buy' opinion on SM on the 15th and raised its target stock price by 82.6% from 46,000 won to 84,000 won.
SM's domestic album shipments reached 3.94 million between April and May, surpassing 3.61 million copies, the largest quarterly shipment ever. Among them, NCT Dream's full-length album in May alone reached 2 million copies. This is NCT's biggest sales ever. The figure also exceeds EXO's previous record sales of 1.45 million copies (5th album).
Another investment point is that the performance will resume next year. "SM headquarters, Japanese subsidiaries SMEJ, SMEJ Plus, and Dreammaker will be able to benefit together," Yuanta Securities said. "The Japanese subsidiary and Dreammaker's expected operating profit in 2022 will be 18.7 billion won, approaching 196 billion won in 2019."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
