[Click eStock] "SM, Initial Rebound in Shinbo... A Sign of Investor Sentiment Recovery"

NH Investment & Securities evaluated that SM Entertainment (SM) has laid the groundwork for a recovery in investor sentiment, supported by the initial sales rebound of key artists and the global success of their music releases. Accordingly, they maintained a 'Buy' rating and a target price of 120,000 KRW.

Researcher Lee Hwajeong of NH Investment & Securities stated, "The consolidated sales for Q2 are expected to be 241 billion KRW, the same level as the previous year, and operating profit is anticipated to increase by 7% to 38.3 billion KRW, in line with market consensus."

Lee positively evaluated the success of new releases and the expansion of tours. He noted, "It is important to focus on the fact that the company is breaking free from the cycle of initial sales decline, which had been the biggest obstacle to investor sentiment for some time. Aespa, which experienced a decline in initial sales from 1.7 million to 1.09 million copies with their previous release, saw a rebound to 1.15 million copies with their new release in May."

Lee also forecasted, "Rise, which had a high base burden due to the debut album's initial sales of 1.02 million copies, continued its growth trend with 1.26 million copies in initial sales for the June release. NCT 127's July release is also expected to have a limited decline compared to the previous initial sales of 1.65 million copies."