KOSDAQ-listed SME was weak early on the 6th. As securities firms cut their target prices one after another due to sluggish results at some subsidiaries, investor sentiment appears to have deteriorated.
As of 9:40 a.m. that day, SME was trading at 104,100 won, down 9,400 won (8.28%) from the previous session.
That day, Hanwha Investment & Securities lowered SME's target price to 150,000 won from 190,000 won, and EUGENE INVESTMENT & SECURITIES (180,000→160,000 won) and NH Investment & Securities (180,000→175,000 won) also cut theirs in succession.
Lee Hwa-jung, an analyst at NH Investment & Securities, said, "We lowered the target price while conservatively adjusting our earnings estimates in light of slower-than-expected growth at key subsidiaries such as DearU and Dream Maker."
There was also criticism that the pace of entry into overseas markets is slow. Lee Hyun-ji, an analyst at EUGENE INVESTMENT & SECURITIES, said, "Next year, EXO will return as a full group, and a rookie artist (SMTR25) will debut, so a variety of artist activities are expected to continue," while noting, "Entry into the North American market is slow, and growth in concert attendance is not strong."