[Market Focus] DearU Hits 52-Week High on News of KRX300 Inclusion

DearU is showing strong performance in early trading.

As of 9:08 a.m. on May 28, DearU was trading at 56,200 won, up 8.49% (4,400 won) from the previous day. During intraday trading, the stock surged to 56,900 won, setting a new 52-week high.

Recently, as investor sentiment has been recovering, particularly among entertainment stocks, news that DearU will be newly included in the KRX300 Index is believed to have driven the share price higher.

Ji Inhae, a researcher at Shinhan Investment Corp., stated, "The average number of subscriptions in the first quarter was 1.88 million, marking a decline for the seventh consecutive quarter. The loss of subscribers for a particular actor was inevitable." She added, "From the second quarter, we expect sharp sales growth driven by a rebound in subscriber numbers, as well as a significant increase in margins due to royalty performance in China and Japan and a reduction in commission rates." The target price was set at 59,000 won.