[Click eStock] "SM, A Time for Reassessment Needed"

Daishin Securities analyzed on the 23rd that it is time to reassess SM.

Im Sujin, a researcher at Daishin Securities, stated in a report on the same day, "Contrary to concerns, aespa's fandom is showing a very solid appearance," and added, "Considering that this is their first full-length album, which is meaningful to fans, and that the album price has increased by about 26%, it is highly likely to surpass the sales of the previous album."

Researcher Im also noted, "Following RISE, the successful debut of NCT WISH in the first quarter of this year is also noteworthy," and said, "Despite being a Japan-localized group, WISH recorded the 6th highest first-week sales among boy group debuts."

He continued, "The girl group scheduled to debut in the third quarter is already showing good signs of a Southeast Asian fandom forming even before promotions," emphasizing, "As the entertainment company has proven its most important IP creation capability, it is time for reassessment."

He projected that SM will record sales of 219.2 billion KRW and operating profit of 22.4 billion KRW in the first quarter of this year, representing increases of 7.5% and 22.7% respectively compared to the same period last year. However, operating profit is expected to slightly miss the consensus.

He explained, "This is due to increased labor costs from the establishment of a multi-production center and the publishing subsidiary KMR," but added, "However, it is expected to be at the same level as the previous year due to the one-time costs related to the management dispute reflected in the same period last year."