[Alpha Biz= Reporter Kim Jisun] Shares of the three entertainment companies are also hardly getting out of the bottom, with HYBE showing signs of weakness related to its affiliate, ADOR.
Critics point out that if the entertainment industry has focused on expanding its appearance, it should now seek substantial growth by minimizing management and human risks.
According to the Korea Exchange on the 28th, SM Entertainment (SM) closed at 81,000 won. This is a drop of about 10% since January. It fell more than 40% compared to August 29 last year (147,000 won), when it reached a high point. SM's stock price has been on the decline since its acquisition of Kakao last year. SM, which recorded an earning shock in the fourth quarter of last year, saw its stock price fluctuate due to rumors of a romantic relationship between Carina, a member of girl group aespa, following judicial risks stemming from allegations of price manipulation.
SM lowered its earnings outlook for this year due to a number of unfavorable factors. SM lowered its sales target for this year from 1.4 trillion won to 1.18 trillion won and operating profit from 400 billion won to 160 billion won. SM's sales consensus for this year, estimated by financial information provider FnGuide, is KRW 1.583 trillion and operating profit is KRW 146.8 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
