[Click eStock] "SAMG Enter, Profit Turnaround This Year... Improved Profitability Next Year"
On the 27th, Korea Investment & Securities forecasted that SAMG Entertainment will return to operating profit this year and expects both its scale and profitability to significantly improve next year.
SAMG Entertainment is a comprehensive kids' entertainment company that has successfully diversified its business by producing animation while simultaneously manufacturing and distributing MD products. The estimated sales composition for this year is 80.4% from MD products, 13.4% from licensing income, and 2.8% from content production. The IP composition is 8% for Catch Tini Ping, 0.5% for Mini Force, 0.5% for Metal Cardbot, and 1% for others.
Yoon Cheol-hwan, a researcher at Korea Investment & Securities, stated in a report on the same day, "Starting with the launch of Tini Ping Season 4 on the 22nd, we plan to strengthen media utilization by pre-releasing content on YouTube channels before TV broadcasts and selling MD products," adding, "Besides Tini Ping, there are various momentum issues such as Mini Force Season 6, Metal Cardbot Season 1 airing, and plans for Tini Ping Season 3 to enter the Chinese market."
Researcher Yoon forecasted, "This year, SAMG Entertainment is expected to record sales of 111.3 billion KRW and an operating profit of 5.2 billion KRW, successfully turning to profitability," but added, "Costs related to the transition to direct distribution in marts were higher than expected, and advertising expenses increased significantly due to strengthened marketing, so profitability is expected to be sluggish compared to the high expectations at the beginning of the year."
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However, he noted, "With the first half as the low point, the second half will see multiple issues such as new releases and entry into the Chinese market, and the synergy between the online Emotion Castle platform and the offline Tini Ping World is expected to result in a stronger-than-expected Christmas peak season effect," and predicted, "In 2024, as the direct distribution system stabilizes and overseas sales reflect the impact of changed contract methods, both scale and profitability are expected to improve significantly."
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