Normus Finds Opportunities in China, Up 70% This Year

Stock Hits Record High of 38,000 Won Since Listing
First-Half Operating Profit Reaches 8.8 Billion Won, Up 187% Year-on-Year
Large-Scale K-pop Concerts in China Expected to Increase

Normus, which was listed on the KOSDAQ market in November last year, has seen its stock price steadily rise this year. Improved profitability in the first half of the year, along with expectations of new business opportunities in China starting next year, are fueling optimism.

According to the financial investment industry on August 22, Normus's stock price has increased by 70.4% this year, rising from 20,600 won at the end of last year to 35,100 won. During the previous trading session, the stock reached an all-time high of 38,000 won at one point.

Since the beginning of the year, domestic institutional investors have made a cumulative net purchase of Normus shares worth 29.4 billion won. The average purchase price was 27,431 won, resulting in an evaluation profit rate of 28% based on the current stock price. Foreign investors also recorded a net purchase of 16.4 billion won, further contributing to the stock price increase. The evaluation profit rate for foreign investors stands at 31%.

Normus provides comprehensive solutions utilizing artist intellectual property (IP). In addition to direct activities such as album sales and concert hosting, the company acquires rights to use IP through contracts via fandom platforms, supporting indirect activities as well. In the first half of this year, Normus posted sales of 35.2 billion won and operating profit of 8.8 billion won. Compared to the same period last year, sales increased by 26.9% and operating profit surged by 186.6%. The operating margin reached 25%, up 14 percentage points from the same period last year.

Normus explained that its online and offline integrated business through the fandom platform 'fromm' led to improved profitability. Fromm is a platform that combines fandom-based content and communication, offering features such as one-on-one messaging with artists, real-time concert streaming, and fan community management. The company has enhanced user experience on the platform through offerings such as artist merchandise, digital albums, and upgraded private messaging features. Normus is also expanding content supply to fans worldwide.

Expectations are growing that Normus will continue to achieve steady growth as relations with China improve. Park Chansol, a researcher at SK Securities, stated, "There is increasing anticipation that large-scale K-pop concerts will be possible in China," adding, "Normus is also preparing in earnest for its China business next year."

Normus has signed a strategic partnership and service agreement with 'Mango TV,' one of China's leading video platforms. Mango TV is a state-owned capital platform under Hunan Broadcasting System (HBS) and has secured 250 million paid subscribers. Normus plans to launch a localized version of its fandom platform 'fromm' for Chinese users, utilizing its existing database.

Daishin Securities analyzed that the reopening of the Chinese concert market will serve as a long-term growth driver for Normus. For small and medium-sized entertainment companies, concerts in Western countries are often planned conservatively due to high costs and the difficulty of predicting audience demand. In contrast, as more agencies plan concerts in China to secure fandoms, the number of such events could increase. Fandoms in China also have relatively higher purchasing power. As Normus's role expands, the company is expected to see more business opportunities.