Report

SM Entertainment (041510.KS): Earnings Dim But Outlook Bright

  • -  We maintain BUY and raise our target price to KRW50,000 on SM Entertainment.

  • -  Parent operating profit is slated to rise to KRW10.4bn in 1Q18, buoyed by year-end concerts at home

    and abroad as well as robust recorded music sales.

  • -  JPY weakness dampened SM Japan’s 4Q17 earnings but we expect this to rebound in 1Q18.

  • -  Dream Maker looks set to enjoy robust growth this year thanks to a number of concerts and the

    resumption of business in China.

  • -  SM C&C suffered a deterioration of earnings in 4Q17 due to a write-off of advance payments from China

    associated with its hit drama content.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Peter Yoo

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