Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 21 August, SM Entertainment announced that it will sell its non-core assets including its controlling stakes in SK C&amp;C and KeyEast.</li>
<li>The combined sales amount could be about 110 billion won or more, representing 7% or more of SM Entertainment's market cap. </li>
<li>Sale of SM C&amp;C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet for higher shareholder returns.</li>
</ul>


On 21 August, SM Entertainment announced that it will sell its non-core assets including its controlling stakes in SK C&amp;C and KeyEast.
The combined sales amount could be about 110 billion won or more, representing 7% or more of SM Entertainment's market cap. 
Sale of SM C&amp;C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet for higher shareholder returns.


SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

<ul>
<li>In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band in August 2024. </li>
<li>Dear Alice boy band will start its promotion with the broadcast of<em> "Made in Korea: The K-Pop Experience"</em> on BBC One and BBC iPlayer on 17 August.</li>
<li>We are cautiously positive on Dear Alice band. Unlike most aspiring boy bands, Dear Alice has a HUGE advantage of launching the band on the BBC through a TV show.</li>
</ul>


In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band in August 2024. 
Dear Alice boy band will start its promotion with the broadcast of "Made in Korea: The K-Pop Experience" on BBC One and BBC iPlayer on 17 August.
We are cautiously positive on Dear Alice band. Unlike most aspiring boy bands, Dear Alice has a HUGE advantage of launching the band on the BBC through a TV show.


SM Entertainment: Share Cancellation and the Launch of a New British Band - Dear Alice

Event-Driven

<ul>
<li>After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM Entertainment.</li>
<li>The block deal sale price discount is 4% to 5.5% discount to the closing price on 27 May (95,800 won). </li>
<li>One of the major positive, recent issues facing the Korean K-Pop related stocks has been the potential easing of Korean content restrictions by China.</li>
</ul>


After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM Entertainment.
The block deal sale price discount is 4% to 5.5% discount to the closing price on 27 May (95,800 won). 
One of the major positive, recent issues facing the Korean K-Pop related stocks has been the potential easing of Korean content restrictions by China.


HYBE: Block Deal Sale of SM Entertainment

<ul>
<li>The major K-Pop stocks had the biggest up day so far this year on 23 May, driven by potential easing of Korean cultural contents restrictions by the Chinese government. </li>
<li>In the past nine years, there has been a ban on Korean singers' performances in China.</li>
<li>Among the major K-Pop stocks, we continue to have a Positive View on S.M.Entertainment Co (041510 KS) but bearish on HYBE (352820 KS) and YG Entertainment (122870 KS).</li>
</ul>


The major K-Pop stocks had the biggest up day so far this year on 23 May, driven by potential easing of Korean cultural contents restrictions by the Chinese government. 
In the past nine years, there has been a ban on Korean singers' performances in China.
Among the major K-Pop stocks, we continue to have a Positive View on S.M.Entertainment Co (041510 KS) but bearish on HYBE (352820 KS) and YG Entertainment (122870 KS).


A Pop in Major K-Pop Stocks Driven by Potential Easing of Korean Contents Restrictions by China

<ul>
<li>In this insight, we provided the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).</li>
<li>The top 100 YouTube channels in Korea have received 390.7 billion in total views as of June 2023. Of these total views, K-Pop channels views accounted for 46.4% share.</li>
<li>YouTube has been meaningfully taking away market share from Kakao and Naver in the past three years. KakaoTalk's MAU was 41.5 million in May 2023. YouTube was a close second.</li>
</ul>


In this insight, we provided the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).
The top 100 YouTube channels in Korea have received 390.7 billion in total views as of June 2023. Of these total views, K-Pop channels views accounted for 46.4% share.
YouTube has been meaningfully taking away market share from Kakao and Naver in the past three years. KakaoTalk's MAU was 41.5 million in May 2023. YouTube was a close second.


Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea

South Korea

S.M.Entertainment Co. plans, produces, promotes, and markets Korean rock and roll music in several formats, such as compact discs (CD), concert tours, television productions, and music videos.  The Company also operates artist management business as well as licensing and copyright business from the company's music records.

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S.M.Entertainment Co (041510 KS)

SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

Sale of SM C&C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet...

Douglas Kim

HYBE: Block Deal Sale of SM Entertainment

After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM...

Douglas Kim

A Pop in Major K-Pop Stocks Driven by Potential Easing of Korean Contents Restrictions by China

The major K-Pop stocks had the biggest up day so far this year on 23 May, driven by potential easing of Korean cultural contents restrictions by...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

Sale of SM C&C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet...

Douglas Kim

SM Entertainment: Share Cancellation and the Launch of a New British Band - Dear Alice

In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band (Dear Alice)...

Douglas Kim

HYBE: Block Deal Sale of SM Entertainment

After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM...

Douglas Kim

A Pop in Major K-Pop Stocks Driven by Potential Easing of Korean Contents Restrictions by China

The major K-Pop stocks had the biggest up day so far this year on 23 May, driven by potential easing of Korean cultural contents restrictions by...

Douglas Kim

Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea

In this insight, we analyze the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).

Douglas Kim