SNSD’s incredible year in Japan has helped boost SM Entertainment’s stock value.
According to Kong TaeHyun of Samsung Securities, “SNSD’s successful advancement into the Japanese market through the sales of their Japanese album which has gone beyond expectation, gives a positive indication for the spread of Kpop in the future. Under overseas management, the increased revenue in overseas market has strengthened the position of the agency’s artistes”.
The growing popularity of Girl’s Generation should also contribute enormously to their 2011 2nd half stock price, as expectations on growth have now set their targeted stock price to 33,000 won (approximately $33 USD) per share.
The 3rd quarter should continue be strong for SM Entertainment as TVXQ’s single album will be released as well as a rumored SMTown DVD of their concert this past January in Tokyo.
Predictions for the 4th quarter are also equally positive. With the announced release of Girl’s Generations full-length album slated for September, a Tokyo SM Town Concert, and a new active cycle of SNSD Promotions in Asia, SM Entertainments future looks bright.
The girls have truly become a powerful force in the Japanese entertainment industry since their debut. They have made a ridiculous amount of album sales, and captured many CF and promotional deals. While their success in Japan may have been unexpected by investors, SONEs certainly expected it. This particular piece of news also reminds me of a previous news article that talked about a loyal fan who invested tremendously in SM Entertainment because he believed that the girls popularity would help it grow. With this recent news it looks like that fan made a great decision.
Source: Fanwonder, ch0sshi@ssf, Nate