Report

SM Entertainment (041510.KS): 3Q17 hit by one-offs but still a pleasant surprise

  • Maintain BUY on SM Entertainment and raise our target price to KRW46,000.

  • Parent company posted an operating profit of KRW13.3bn helped by robust album sales by EXO.

  • Beijing no longer blocking Korean content, we export more China-bound exports and concerts on the mainland.

Underlying
S.M. Entertainment

SM ENTERTAINMENT CO., Ltd., formerly S.M. Entertainment Co., Ltd, is a Korea-based company engaged in the entertainment business. The Company mainly operates in two business segments: music record segment and management segment. Its music record segment engages in the planning, production and distribution of music records and videos, as well as publishing and licensing of Korean and foreign music products. Its management segment engages in the provision of management services for its artists, as well as casting and training of entertainers. In addition, through its subsidiaries, the Company involves in the travel business.

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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