Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 27 May, HYBE announced that it will sell its 9.4% in S.M.Entertainment (2.21 million shares) for about 243 billion won (US$145 million) to Tencent Music Entertainment.</li>
<li>HYBE's sale of its stake in SM Entertainment is expected to take place on Friday (30 May) after the market close through an after hours block deal trade. </li>
<li>The block deal sale of SM Entertainment by HYBE to Tencent is likely to have a negative impact on SM Entertainment's shares mainly due to large share price discount (15.3%).</li>
</ul>


On 27 May, HYBE announced that it will sell its 9.4% in S.M.Entertainment (2.21 million shares) for about 243 billion won (US$145 million) to Tencent Music Entertainment.
HYBE's sale of its stake in SM Entertainment is expected to take place on Friday (30 May) after the market close through an after hours block deal trade. 
The block deal sale of SM Entertainment by HYBE to Tencent is likely to have a negative impact on SM Entertainment's shares mainly due to large share price discount (15.3%).


HYBE to Sell Its 9.4% Stake in SM Entertainment to Tencent Music in a Block Deal Sale

Equity Bottom-Up

<ul>
<li>On 21 August, SM Entertainment announced that it will sell its non-core assets including its controlling stakes in SK C&amp;C and KeyEast.</li>
<li>The combined sales amount could be about 110 billion won or more, representing 7% or more of SM Entertainment's market cap. </li>
<li>Sale of SM C&amp;C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet for higher shareholder returns.</li>
</ul>


On 21 August, SM Entertainment announced that it will sell its non-core assets including its controlling stakes in SK C&amp;C and KeyEast.
The combined sales amount could be about 110 billion won or more, representing 7% or more of SM Entertainment's market cap. 
Sale of SM C&amp;C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet for higher shareholder returns.


SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

<ul>
<li>In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band in August 2024. </li>
<li>Dear Alice boy band will start its promotion with the broadcast of<em> "Made in Korea: The K-Pop Experience"</em> on BBC One and BBC iPlayer on 17 August.</li>
<li>We are cautiously positive on Dear Alice band. Unlike most aspiring boy bands, Dear Alice has a HUGE advantage of launching the band on the BBC through a TV show.</li>
</ul>


In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band in August 2024. 
Dear Alice boy band will start its promotion with the broadcast of "Made in Korea: The K-Pop Experience" on BBC One and BBC iPlayer on 17 August.
We are cautiously positive on Dear Alice band. Unlike most aspiring boy bands, Dear Alice has a HUGE advantage of launching the band on the BBC through a TV show.


SM Entertainment: Share Cancellation and the Launch of a New British Band - Dear Alice

Cross Asset Strategy

<ul>
<li>Now that Lee Jae-Myung has become new South Korean President, the uncertainty revolving who will lead South Korea in the next five years is now over.</li>
<li>In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the market for the remainder of 2025.</li>
<li>The four investment themes include Korean Holdcos/Quasi Holdcos, Korean Cultural Contents, Securities, and SK Group Companies.</li>
</ul>


Now that Lee Jae-Myung has become new South Korean President, the uncertainty revolving who will lead South Korea in the next five years is now over.
In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the market for the remainder of 2025.
The four investment themes include Korean Holdcos/Quasi Holdcos, Korean Cultural Contents, Securities, and SK Group Companies.


Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

<ul>
<li>In this insight, we provided the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).</li>
<li>The top 100 YouTube channels in Korea have received 390.7 billion in total views as of June 2023. Of these total views, K-Pop channels views accounted for 46.4% share.</li>
<li>YouTube has been meaningfully taking away market share from Kakao and Naver in the past three years. KakaoTalk's MAU was 41.5 million in May 2023. YouTube was a close second.</li>
</ul>


In this insight, we provided the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).
The top 100 YouTube channels in Korea have received 390.7 billion in total views as of June 2023. Of these total views, K-Pop channels views accounted for 46.4% share.
YouTube has been meaningfully taking away market share from Kakao and Naver in the past three years. KakaoTalk's MAU was 41.5 million in May 2023. YouTube was a close second.


Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea

South Korea

S.M.Entertainment Co. plans, produces, promotes, and markets Korean rock and roll music in several formats, such as compact discs (CD), concert tours, television productions, and music videos.  The Company also operates artist management business as well as licensing and copyright business from the company's music records.

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S.M.Entertainment Co (041510 KS)

HYBE to Sell Its 9.4% Stake in SM Entertainment to Tencent Music in a Block Deal Sale

The block deal sale of SM Entertainment by HYBE to Tencent is likely to have a negative impact on SM Entertainment's shares mainly due to large...

Douglas Kim

SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

Sale of SM C&C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet...

Douglas Kim

Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HYBE to Sell Its 9.4% Stake in SM Entertainment to Tencent Music in a Block Deal Sale

The block deal sale of SM Entertainment by HYBE to Tencent is likely to have a negative impact on SM Entertainment's shares mainly due to large...

Douglas Kim

SM Entertainment: Disposal of Non Core Assets - SM C&C and KeyEast

Sale of SM C&C and KeyEast is likely to have a positive impact on SM Entertainment by selling its non-core assets and improving its balance sheet...

Douglas Kim

SM Entertainment: Share Cancellation and the Launch of a New British Band - Dear Alice

In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band (Dear Alice)...

Douglas Kim

Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the...

Douglas Kim

Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea

In this insight, we analyze the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).

Douglas Kim