[Click eStock] “SAMG Enter, Potential for Toddler Fandom Business... Overcoming Limits”

Hana Securities analyzed on the 19th that SAMG Entertainment, which owns its own IP targeting children aged 4 to 7, can operate a fandom business where the children themselves, not their parents, make the choices.

Lee Ki-hoon, a researcher at Hana Securities, stated, “Among major domestic character companies, Iconix (Pororo) has never exceeded an operating profit of 10 billion KRW, and The Pinkfong Company (Baby Shark) turned to a deficit this year after peaking in 2019. Pororo shares intellectual property (IP) copyrights, and Pinkfong targets infants (ages 1 to 3), making it difficult to maximize MD sales through fandom formation,” he analyzed.

On the other hand, SAMG Entertainment develops its own IP targeting children aged 4 to 7, who are highly sensitive to trends, enabling a fandom business where children themselves, not their parents, make the choices. Researcher Lee Ki-hoon explained, “With in-house animation and toy teams, they introduced collectible elements from the IP planning stage to maximize MD sales. Starting this year’s new season, the domestic distribution structure was changed to direct delivery to marts without going through distribution agencies, and in China, the royalty structure was changed to direct sales recognition through a distribution corporation (JV). Especially in China, where there are no mega-hit IPs compared to the US or Japan, it will be easier to increase market share,” he forecasted.

He added, “Tinyping expands characters centered around the main character like Pok?mon, with sequels produced every year, and is building global recognition through various platforms such as YouTube, Netflix, and iQIYI. Above all, to enable simultaneous consumption from content to MD, they are strengthening their own platform, which currently has 700,000 YouTube subscribers and aims to reach 300,000 subscribers within the year, and have opened offline themed spaces to gather fandom both online and offline,” he reported.

He continued, “Sales in 2025, when the leverage effect from building their own platform ecosystem is expected to fully materialize, are projected to be 203.6 billion KRW, with operating profit of 20.2 billion KRW. There is potential for further upward revision if high growth in China and stable revenue contributions from the theme park are confirmed,” he analyzed.

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