Kangta sold another batch of his SM stock, gaining a price-earning ratio of 91%
Singer Kangta, a former member of idol group H.O.T. and a non-registered director of SM since 2014, sold his SM Entertainment shares and made another high profit.
According to the Financial Supervisory Service’s electronic disclosure system DART on Dec 11th, Kangta sold 2,200 shares (about 142.67 million won) of his holdings for two days from Dec 5th to the 6th. The unit price of his shares is a minimum of 81,500 won and a maximum of 82,000 won. Compared to the exercised stock options (42,640 won) in July, Kangta’s stock gained 91.42%. Earlier in July, Kangta exercised his right to 6,000 stock options.
Kangta’s profit from this stock sale is 85.76 million won with 1,500 SM shares left.
Kangta also sold 2,300 shares in September, earning a profit of about 81.33 million won. At that time, the selling price per share was 76,200 won to 79,500 won. Kangta’s earnings this year alone amounted to 167.09 million won through stock sales.
Prior to this, Kangta made a total of 293.72 million won in profits by selling stocks purchased three times between 2018 and 2019.
On April 1st, SM’s share price hit an all-time high of 90,000 won, fueled by expectations for improved management. Since then, it seems to have been pushed back, but since last month, it has been on the rise again and is trading at around 80,000 won.
Stock market outlook of SM is also looking bright, with Samsung Securities raising its target stock price from 95,000 won to 104,000 won, and Korea Investment & Securities raising its target stock prices from 100,000 won to 110,000 won in December. Profitably are expected to rise due to high expectations about album sales and concerts both domestically and abroad.
Park Ha Kyung, a researcher at Korea Investment & Securities, said, “NCT has become a stable million-seller, while aespa has sold over a million copies, recording an unprecedented sales record for a new girl group.” He also expressed that a sharp improvement in performance is highly likely.
Choi Min Ha, a researcher at Samsung Securities, also pointed out that there are clear improvements in profits from both headquarters and subsidiaries, while discounted factors have disappeared due to SM resolving its management issue.
Meanwhile, according to FnGuide, a financial information company, SM’s consolidated sales and operating profit for the fourth quarter of this year are expected to be 222.2 billion won and 21.3 billion won, respectively.