[Click eStock] "FNC Entertainment, Artist Growth Drives Revenue Increase"

Kiwoom Securities Issues 'Buy' Investment Rating and Sets Target Price at 8,000 Won... Closing Price on 17th at 6,140 Won

SF9 under FNC Entertainment (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis suggests that the growth of artists under FNC Entertainment will act as a positive factor for increased sales and other metrics.

According to Kiwoom Securities on the 20th, FNC Entertainment's Q2 performance is estimated at 20.3 billion KRW in sales and 600 million KRW in net profit. While sales are expected to decrease by 9.6% compared to the previous year, net profit is turning positive.

Researcher Namsoo Lee of Kiwoom Securities explained, "The growth of SF9 and N.Flying under FNC Entertainment led to an increase in album sales from 140,000 units in the first half of last year to 190,000 units this year, which is believed to have driven the performance."

Although a decrease in concerts, a common downturn factor for domestic entertainment companies due to COVID-19, was observed, actors Jung Haein and variety entertainer Moon Seyoon performed well, increasing appearances and advertisements, which helped defend against a decline in performance. In Q3, it is expected that a stronger lineup will be demonstrated through Jung Yonghwa's digital single and AOA's Seolhyun's appearance in the drama 'Day and Night.'

Kiwoom Securities gave FNC Entertainment a 'Buy' investment opinion with a target price of 8,000 KRW. The closing price on the 17th was 6,140 KRW. Researcher Lee said, "The rookie boy group debuting in the second half of the year is expected to quickly gain exposure and buzz through self-produced content involving the artists, and by forming two male idol groups (SF9, rookie) and two female idol groups (AOA, Cherry Bullet), the artist portfolio will be strengthened. Additionally, with FT Island's discharge next year, the full lineup of the band group is anticipated, and comprehensive concert bookings from domestic to overseas markets will be possible, leading to a steeper improvement in performance."

This content was produced with the assistance of AI translation services.