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[Enter Market] SM to Debut Naevis, British Boy Group, and New Girl Group in Second Half of the Year, Securing Momentum with New IPs④
입력 2024-07-16 01:31   

▲나이비스(사진제공=SM엔터테인먼트)

SM Entertainment (KOSDAQ 041510, hereafter referred to as SM) boasts a diverse range of IPs, from rookies to veterans, ensuring a robust pipeline.

For entertainment companies, while the performance of established IPs is valuable, the successful debut of new artists is even more critical. If new artists can secure popularity and fandom, they can generate various revenue streams, including album sales, concerts, and merchandise.

SM successfully landed RIIZE in the second half of last year and NCT WISH earlier this year in the music industry, securing momentum for corporate growth. In the second half of 2024, SM plans to continue this momentum by debuting three new artist teams.

▲나이비스(사진제공=SM엔터테인먼트)

In the third quarter, virtual artist Naevis will debut. Naevis is a supporting character in Aespa's universe, helping Aespa in their storyline. Naevis drew attention with a surprise performance at Aespa's concert held on June 29-30 at the Jamsil Indoor Stadium in Songpa-gu, Seoul.

As virtual artists like Plave and Isakai Idols gain popularity and the related market expands, SM aims to meet various market demands and strengthen its influence in new markets through Naevis.

In the fourth quarter, SM is preparing to introduce a boy group that will dominate the global market in collaboration with the British entertainment company MOON&BACK (M&B), which includes the producer of "Britain's Got Talent." M&B will cast the members, while SM will provide K-pop expertise in music, music videos, and choreography. The songs performed by the group will be overseen by SM's music publishing subsidiary, KMR (Creation Music Rights).

▲SM과 M&B가 영국 보이그룹 제작을 위해 전략적 협약을 맺었다.(사진제공=에스엠엔터테인먼트)

Notably, the selection and growth process of the boy group will be planned as a TV series in collaboration with M&B, to be aired in South Korea, the UK, and the US. As the first joint boy group presented by South Korea and the UK, the birthplace of pop, it is expected to draw significant global attention.

Additionally, in the fourth quarter, SM will debut a new girl group for the first time in four years since Aespa. If the British boy group and the Korean girl group debut successfully, SM will form a portfolio centered around newer IPs. This is expected to be a positive factor in terms of future performance and corporate value.

Regarding this, Hana Securities researcher Lee Ki-hoon stated on the 18th of last month that the debut of new IPs and the comeback of existing artists concentrated in the fourth quarter will likely increase SM's stock price momentum towards the end of the year.

He further explained that the recent stock price drop due to unfounded rumors makes the current stock price attractive relative to performance, and he emphasized that in the fourth quarter, "We can expect not only performance and momentum but also a re-evaluation of valuation."