[Special Stock] SM Rises on Profit Margin Improvement Outlook... 5 Consecutive Days of Gains

SM has continued its five-day winning streak.

As of 9:30 a.m. on the 27th, SM is trading at 107,400 won, up 2,400 won (2.29%) from the previous day.

The stock price increase is interpreted as being driven by improved earnings prospects following the inclusion of DearU.

On the same day, Korea Investment & Securities raised the target price for SM from 110,000 won to 130,000 won, expecting an improvement in profit margins this year. Andoyoung An, a researcher at Korea Investment & Securities, said, "In 2024, despite a slight increase in sales due to a decline in album sales from the existing high seniority lineup and an expansion of losses in subsidiaries, the operating profit margin fell from 12% to 9%. This year, operating profit is expected to increase due to operational efficiency and expansion of fandoms in the low seniority lineup, and the operating profit margin is expected to improve to 13% due to the improved performance of loss-making subsidiaries and the consolidated inclusion of DearU, which has a high profit margin."