[Click eStock] “SAMG Enter, Exciting Catch! Earnings Ping”

NH Investment & Securities analyzed on the 9th that SAMG Entertainment is expected to turn profitable from the 4th quarter following a big bath in the 3rd quarter of this year.

Baek Joon-gi, a researcher at NH Investment & Securities, stated in the report, "Despite an operating loss in the 3rd quarter, SAMG Entertainment has indicated the possibility of turning profitable in the 4th quarter, raising expectations for performance improvement," and added, "The movie 'Love's Hatchuping' successfully attracted 1.23 million domestic viewers, with related sales being reflected in earnest and the year-end peak season effect adding to this, a positive performance turnaround is anticipated."

He particularly noted that as SAMG Entertainment is streamlining inefficient businesses through large-scale restructuring and focusing on core IP businesses, significant performance improvements are expected from 2025 onward.

This year, sales to China are expected to exceed approximately 23 billion KRW. It is projected to achieve 16 billion KRW through the Guangzhou distribution corporation and about 7 billion KRW from license sales. Especially, with the recent start of the Chinese broadcast of 'Catch! Tiniping' Season 4, an increase in related toy sales is anticipated.

Regarding the movie business, he explained, "The movie's success confirmed the possibility of expanding SAMG Entertainment's target age group from the existing kids market to older age groups," and added, "The company is strengthening collaboration with major partners and expects an increase in license sales in 2025."

However, offline businesses such as Pangyo Tiniping World are acting as loss factors on consolidated profits, so efficiency improvements remain a challenge.

He said, "The remaining inventory consists of items with high sales potential such as toys and dolls, so the possibility of an additional big bath is low," and forecasted, "SAMG Entertainment plans to strengthen its position in the global market through continuous enhancement of IP value and expansion into the Chinese market, with corporate value expected to gain more attention alongside substantial performance growth from 2025 onward."

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