[Click eStock] "SAMG Enter, Expected to Turn Profitable This Year"

Hana Securities analyzed on the 6th that SAMG Entertainment is expected to turn a profit this year.

Lee Ki-hoon, a researcher at Hana Securities, stated in a report on the same day, "The first series of the Tinyping theatrical trilogy is scheduled to be released at the end of July, with a simultaneous release expected in China," adding, "Following this, Tinyping Season 5 and a new girl-oriented IP targeting an older age group are planned to be launched in the third quarter, along with Mini Force Season 7 in the fourth quarter."

Researcher Lee explained, "Considering the approximately one-year lag between the release timings of new seasons in Korea and China, Tinyping Season 4 and Mini Force Season 6 are also expected to be released in the second half of the year," and added, "For reference, from Mini Force Season 6 onwards, royalties will no longer be recognized; instead, sales will be directly recorded through the Guangzhou corporation."

He further added, "With the recent announcement of establishing a Japanese corporation, expansion into the Japanese market is expected to become more tangible."

Currently, SAMG Entertainment's stock price is trading at around a 12 times price-to-earnings ratio (PER) expected for 2025, reflecting increased uncertainty due to consecutive poor earnings.

However, he analyzed, "Considering the growth in Tinyping sales in China to be confirmed in the first half of the year, aggressive cost control leading to a reduction in operating losses, and the IP launch schedule concentrated in the second half, operating profit is expected to turn positive at 2.5 billion KRW this year, with around 16 billion KRW anticipated next year."