SAMG Entertainment Shares Plunge Nearly 20% Amid Poor Q2 Results and Selling Pressure
Shares of SAMG Entertainment, a leading producer of kids content, have plummeted by nearly 20% in just two days. The decline is attributed to the company’s second-quarter performance, which fell short of market expectations, combined with concerns over potential sell-off due to the exercise of conversion rights on convertible bonds (CB).
As of the 20th, SAMG’s stock closed at 59,100 won, marking a 4.06% drop on the previous day. The stock has now seen a consecutive decline over four trading days, leading to a staggering 27.93% loss since the 13th. On the 18th, the stock experienced a sharp drop of over 16%, and despite expectations for a technical rebound, the downward trend has persisted. In the last week, both foreign and institutional investors have sold off SAMG shares worth 12.2 billion won and 1.6 billion won, respectively, which has contributed to the decline. Notably, foreign investors have maintained a selling spree for 18 consecutive trading days since the 24th of last month.
SAMG Entertainment is known for producing the highest volume of 3D animation in South Korea, with popular titles like ‘Catch! Teenieping’ among its offerings. The company successfully turned a profit in the fourth quarter of last year, driven by the high popularity of the Teenieping characters, leading to a remarkable 621.92% increase in stock price during the first half of this year.
However, recent financial results have put a damper on this growth. For the second quarter, SAMG reported revenues of 35.5 billion won and an operating profit of 5.4 billion won, representing decreases of 0.7% and 14.8% compared to the previous quarter. Both figures fell below market consensus estimates of 36.4 billion won in revenue and 6.4 billion won in operating profit. Even though the company has maintained profitability for three consecutive quarters, the decline compared to the previous quarter has raised concerns about slowing performance.
Looking ahead, the forecast for the third quarter does not appear promising, as financial experts remain cautious amid the current market sentiment.
As of the 20th, SAMG’s stock closed at 59,100 won, marking a 4.06% drop on the previous day. The stock has now seen a consecutive decline over four trading days, leading to a staggering 27.93% loss since the 13th. On the 18th, the stock experienced a sharp drop of over 16%, and despite expectations for a technical rebound, the downward trend has persisted. In the last week, both foreign and institutional investors have sold off SAMG shares worth 12.2 billion won and 1.6 billion won, respectively, which has contributed to the decline. Notably, foreign investors have maintained a selling spree for 18 consecutive trading days since the 24th of last month.
SAMG Entertainment is known for producing the highest volume of 3D animation in South Korea, with popular titles like ‘Catch! Teenieping’ among its offerings. The company successfully turned a profit in the fourth quarter of last year, driven by the high popularity of the Teenieping characters, leading to a remarkable 621.92% increase in stock price during the first half of this year.
However, recent financial results have put a damper on this growth. For the second quarter, SAMG reported revenues of 35.5 billion won and an operating profit of 5.4 billion won, representing decreases of 0.7% and 14.8% compared to the previous quarter. Both figures fell below market consensus estimates of 36.4 billion won in revenue and 6.4 billion won in operating profit. Even though the company has maintained profitability for three consecutive quarters, the decline compared to the previous quarter has raised concerns about slowing performance.
Looking ahead, the forecast for the third quarter does not appear promising, as financial experts remain cautious amid the current market sentiment.
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