Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Korea, republic of
  4. Korea Stock Exchange
  5. Samsung Electronics Co., Ltd.
  6. News
  7. Summary
    A005930   KR7005930003

SAMSUNG ELECTRONICS CO., LTD.

(A005930)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Shares in K-pop group BTS' management label Big Hit drop after debut

10/15/2020 | 03:43am EDT
Big Hit IPO

SEOUL (Reuters) - Shares in Big Hit Entertainment defied the pre-listing hype to dip on their first day of trade on Thursday, giving the management label of South Korean superstar K-pop group BTS a market valuation of 8.7 trillion won ($7.61 billion).

Big Hit, which relies heavily on the boy band for revenue, doubled its initial public offering price to debut at 270,000 won per share, for a 9.6 trillion won valuation. Shares surged by as much as 30% in early trade before dropping back.

Analysts said the closing share price of 258,000 won, still around 90% above the IPO price, should be viewed as a more reasonable price based on fundamentals, rather than a sign of listing failure.

"The closing price is already around analysts' average target price for 2022, based on estimations of profit increases," said eBest Investment & Securities analyst Jina An.

Volatility in early trade - Big Hit topped the daily turnover list with 1.94 trillion won worth of stock changing hands - was to be expected for such a large, high-profile listing, she added.

Analysts say Big Hit has proved itself online savvy, using Youtube, social media and online concerts for revenue generation since in-person performances were cancelled because of the coronavirus pandemic.

But concerns continue about Big Hit's reliance on its star artists, which makes revenue especially vulnerable to any disruptions in output from key talent. BTS, which has a huge global following, accounted for 87.7% of the label's revenue in the first half of 2020, according to a regulatory filing.

"The industry is booming, but it's also very cyclical, and undergoes a lot of fluctuations," said Kim Hyun-yong, analyst at Hyundai Motor Securities, citing potential obstacles such as the country's mandatory military service.

That service is looming for BTS, with the eldest member of the band currently required to sign up by the end of next year and the remaining six members over the following five years.

Some lawmakers and fans have called for the band to receive an exemption from or postponement of the roughly two-year commitment, arguing they are doing plenty for their country without wearing a soldier's uniform.

Earlier this week, BTS faced a barrage of criticism in China after the band's lead member made remarks about the 1950-53 Korean War. BTS-related social media posts of big-name brands, including Samsung, FILA and Hyundai, subsequently disappeared from Chinese e-commerce platforms.

Thursday's float made the band members instant multimillionaires, with each granted shares worth 17.6 billion won ($15.39 million) at the closing price, but BTS' official Twitter account did not reference the listing, focusing instead on the group's win at the coinciding U.S. Billboard Music Awards for Top Social Artist.

NEW ARTISTS?

Analysts said BTS' successful online concerts and Big Hit's unprecedented level of control over its revenue streams via its Weverse fandom platform that distributes BTS content and sells merchandise, differentiate the label.

"Although offline concerts are impossible for the time being, Big Hit's results in the first half of this year show that the content and merchandise made profits; it was hardly affected on-year," said KTB Investment & Securities analyst Nam Hyo-ji.

Big Hit founder and co-CEO Bang Si-hyuk said the company would continue "to research, challenge, discover innovative business models, and apply them to continue to grow in the global market."

The listing added to heightened IPO activity in South Korea, with volumes rising 51% to $2.9 billion so far this year, compared with the same period last year, according to Refinitiv data.

The pipeline looks solid after government stimulus to boost the economy amid the coronavirus pandemic flooded markets with cash, analysts said. Online game developer Krafton, and chat app operator Kakao's mobile banking unit KakaoBank have both begun preliminary processes for listing.

(Reporting by Joyce Lee, additional reporting by Gaurav Dogra in Bangalore, Choonsik Yoo, Hyunjoo Jin and Heekyong Yang in Seoul; Editing by Tom Hogue and Jane Wardell)

By Joyce Lee


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
FILA HOLDINGS CORPORATION 2.91% 56600 End-of-day quote.29.52%
HYUNDAI CORPORATION -1.44% 20550 End-of-day quote.28.84%
HYUNDAI MOTOR COMPANY -0.63% 235000 End-of-day quote.22.40%
HYUNDAI MOTOR SECURITIES CO., LTD. 0.00% 13600 End-of-day quote.7.94%
JYP ENTERTAINMENT CORPORATION 5.27% 42950 End-of-day quote.11.85%
KAKAO CORP. 4.73% 155000 End-of-day quote.98.97%
SAMSUNG ELECTRONICS CO., LTD. -0.49% 80500 End-of-day quote.-0.62%
SM ENTERTAINMENT CO., LTD. -0.36% 54800 End-of-day quote.84.20%
YG ENTERTAINMENT INC. 2.05% 54800 End-of-day quote.22.60%
All news about SAMSUNG ELECTRONICS CO., LTD.
03:01aS.Korea stocks tumble on hawkish Fed; won hits 3-month low
RE
02:57aGUILD ESPORTS  : Samsung Strikes One-Year Sponsorship Deal with Guild Esports
MT
06/20SAUDI ARABIAN OIL  : Aramco Completes $12.4 Billion Sale of 49% Oil Pipeline Bus..
MT
06/20SAMSUNG ELECTRONICS  : Unveils Its Expanded 2021 Odyssey Gaming Monitor Lineup
PU
06/20MARKET CHATTER : Samsung Electronics May Hold Technology Conference in October o..
MT
06/20MARKET CHATTER : Kakao Becomes South Korea's Fifth Largest Conglomerate by Marke..
MT
06/18SAUDI ARABIAN OIL  : EIG-led consortium closes $12.4 billion Aramco pipelines de..
RE
06/18MARKET CHATTER : Samsung Electronics at Second Place in European Wearables Marke..
MT
06/18MARKET CHATTER : Memory Chip Market to Surge 32% in 2021, South Korean Chipmaker..
MT
06/18MARKET CHATTER : ICT Ministry Cancels Huawei, Samsung Equipment Assessments over..
MT
More news
Financials
Sales 2021 267 859 B 236 B 236 B
Net income 2021 36 277 B 32,0 B 32,0 B
Net cash 2021 108 117 B 95,3 B 95,3 B
P/E ratio 2021 14,4x
Yield 2021 1,95%
Capitalization 541 461 B 477 B 477 B
EV / Sales 2021 1,62x
EV / Sales 2022 1,39x
Nbr of Employees -
Free-Float 82,7%
Chart SAMSUNG ELECTRONICS CO., LTD.
Duration : Period :
Samsung Electronics Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SAMSUNG ELECTRONICS CO., LTD.
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 37
Average target price 106 162,16 KRW
Last Close Price 80 500,00 KRW
Spread / Highest target 64,0%
Spread / Average Target 31,9%
Spread / Lowest Target -1,86%
EPS Revisions
Managers and Directors
NameTitle
Hyun-Suk Kim Co-President, Co-CEO & Director
Dongjin Koh Co-President, Co-CEO & Director
Kinam Kim President, Co-CEO & Director
Tae Moon Roh Co-President & Head-Research & Development
Hee-Chan Roh Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
SAMSUNG ELECTRONICS CO., LTD.-0.62%476 638
HTC CORPORATION29.92%1 176
MERRY ELECTRONICS CO., LTD.-26.28%814
ZEPP HEALTH CORPORATION-8.10%686
JNTC CO., LTD.-15.22%490
UNIDEVICE AG-7.38%40