IPO head day drops price of broken open quotation, but declining tendency of market prise of Big Hit

Author | Conspicuous of full chrysanthemum orangutan edits | Fan Zhihui

On October 15 Korea time in the morning 8:50, big Hit recreation is in Ru Yidao closes an Er newly the highway was held appear on the market commemorative ceremony, also be Korea stock exchange undertakes direct seeding with the means of Youtube real time direct seeding first.

Fix eyes upon in millions of people below, big Hit recreation lands Korea securities market formally (KOSPI) , stock code 352820.

"Big Hit is the business that cause of vermicelli made from bean starch knows most on the world, have the capacity that it changeover is additional value. "Chairman of board of directors of Big Hit recreation square when hertz commemorated in what appear on the market ceremonially is such that day say.

Also be such in fact. According to what Big Hit recreation will announce on September 2 money signs up for first half of the year, company sale is 294 billion Han respectively with business profit yuan (add up to a RMB about 1.724 billion yuan) with 49.8 billion Han yuan (add up to a RMB about 292 million yuan) . Although epidemic situation concussion brings about concert income to suffer an effect greatly, but all sale domain besides the show all grew somewhat last year compared to the same period, content of the concert on hypostatic special, line, MD and other cause are added situation is satisfactory. Draw near when appearing on the market, the only music of ballproof youth group " Dynamite " ascended a list of names posted up of "HOT 100" of American Billboard pop chart not only head, still created huge economic increase at the same time, to Korea economy contribution is as high as 1.7 trillion Han Yuan.

However, big Hit recreation appears on the market first days share price with 270 thousand Han yuan (the RMB makes an appointment with 1582 yuan) open quotation, drop in order to compare open quotation price however the 258 thousand Han of 4.44% yuan (the RMB makes an appointment with 1512 yuan) closing quotation. Negotiable securities bound expects long already luxuriant give declare failure, but the market prise declining tendency of Big Hit has symptom of a trend early actually.

Appear on the market that day Korea time in the morning 08:30 to 09:00, big Hit recreation is in fair collect price 135 thousand Han Yuan (RMB 791 yuan) quoted price is accepted between 90~200% . In the morning 09:00, the firm is ultimate trade formally with 270 thousand open quotation price of Han Yuan, enrol share price to make public 135 thousand 2 times of Han Yuan.

Open quotation initial stage, the share price of Big Hit rises all the way, achieve 351 thousand Han quickly 9:2 in the morning yuan (add up to a RMB about 2057 yuan) , go up amount to 30% , city total rank resides the 27th. But increase continuously as undersell quantity, in achieve highest trade valence after one bell, share price drops, go up contractible, afternoon 1 when left right-hand rotation is drop, dish in drop for a time to two hundred and fifty-five thousand five hundred Han yuan.

Till afternoon 2 when, share price drops to 264 thousand Han yuan, drop than open quotation price 2.22% , market price amount is maintained in eight thousand eight hundred and eighty-four billion six hundred million Han yuan, total market prise exceeds Han Yu of SM, YG, JYP the market prise summation of company of 3 big manager. When final closing quotation, share price of Big Hit recreation is 250 thousand 8000 Han yuan (add up to a RMB about 1512 yuan) , market prise is 80 thousand 732.3 billion Han yuan (add up to a RMB about fifty-one billion one hundred and eighty-eight million yuan) , rank KOSPI the 33rd.

With computation of closing quotation price, BTS (namely ballproof teenager is round) hold stock value 136.4 billion Han Yuan (add up to a RMB about 799 million yuan) , big Hit recreation of Netmarble of the 2nd large stockholder hold share price value to be 10 thousand 828.5 billion Han yuan (add up to a RMB about ten billion seven hundred and nineteen million yuan) , was 2018 of investment fully 9 times.

What be worth to be carried nevertheless is, although closing quotation share price appears to drop considerably, but the conspicuous when Big Hit recreation is the biggest east holds some stock price to be worth 30 thousand 193.4 billion Han yuan (add up to a RMB about 18.72 billion yuan) . The Korea that occupies plutocrat website statistic appears on the market rank of company stock worth, square when the stock value platoon that hertz has is in Korea stock moneybags the 8th, person of door of control of group of banner and contemporary automobile the 9th Zheng Yixuan chairman 30 billion Han Yuan above; As plain as author of JYP entertainment company Zhen Ying (214.2 billion Han Yuan) , stannum of Liang Xuan of author of YG entertainment company (143.7 billion Han Yuan) etc existing perform photograph of moneybags of art group stock to compare, it is the level that reached latter to cannot be likened to more.

Big Hit recreation first days dish in top share price is 350 thousand 1000 Han yuan, lowermost share price is 250 thousand 3500 Han yuan, the share price of switchback type goes situation the person that make enter late loses profit first days. From apparently look, orgnaization and average investor are many undersell stock in order to earn price difference profit, caused share price it seems that drop.

However get to the bottom of sth traces to the source, big Hit and recreation the external environment variable that the weakness that exists generally depends on cannot be being forecasted, earnings dependence that belongs to actor to specific place is spent too tall, and investor is right the very sensitive investment mentality such as the rumor.

To Big Hit recreation, the enrollment problem of BTS member has not gotten settlement, the company is spent to their dependence taller also. Actually, the sale of 80% comes from BTS this one single group, and drop with the contract issue of actor, fame, the variable such as the possibility of change of change of environment of the uncertainty of overseas market, media, user be fond of is very much.

In addition, the subsidiary BeNX the remainder that serves to operation Weverse platform the share of 29.1% is possessory whether be square when the query of hertz, big Hit recreation also rejects to reply with evasive means all the time.

And as the "IPO such as SK Bio Farm, Kakao Games big fish " appears on the market one after another, but steep fall one after another after a few days of open quotation harden, face IPO of Big Hit recreational, the shareholders of heart unripe exhaustion think " wolf came in succession " , this also is one of main reasons that bring about its share price to be inferior to anticipating.

As we have learned, SK Bio Farm and Kakao Games are in appear on the market initial stage because investor is many afflux, share price rises considerably, appear after 3 days two go up piece drop trend. SK Bio Farm appears on the market the 4th day from 260 thousand 9500 Han yuan dropped 150 thousand 2000 Han yuan, dropped 43.6% . The high point that Kakao Games appears on the market the 3rd day also from 80 thousand 9100 Han yuan dropped 40 thousand 6300 Han yuan, and latter appears on the market first days open quotation price still is less than 40 thousand 8000 Han yuan. Big Hit is equivalent to shifting to an earlier date to duplicate the beaten track that 34 talents begin both quickly in the first day it seems that.

Actually, a lot of investor people although invested the subscribe earnest money of 100 million Han Yuan above, but by distributive share amount it is a digit only. Can enter in 2 class market only bureau, it is a purpose in order to realize short-term price difference, insufficient to the confidence of extended hold, because the share price of this Big Hit continues very hard to rise, also be in reason.

Of course, index of nearly two days of KOSPI dropped many a little bit 40, the KOSDAQ index with individual investor higher proportion steeps fall before today 1.20% , also continued to steep fall that day 1.98% . Dejected recently stock market goes situation, also be considered as one of reasons with depressed accident of Big Hit share price.

Actually, be in early before Big Hit fixes fiducial price, industry has an analysis to think Big Hit is fiducial before this share price limits (the 105 thousand ~13.5 that will announce on September 2 10 thousand Han Yuan interval) by overmeasure -- if price of real closing quotation achieves 2 times of fiducial price, market prise of Big Hit recreational will achieve about 12 trillion Han yuan (add up to a RMB about seventy billion three hundred and forty-four million yuan) , keep balance with biology of SamSung life, SK, it is the Han Yu such as JYP, YG, SM 4 times of the sum of market price amount of company of 3 big main entertainment.

Normally the circumstance falls, the company of methodological computation a person of same business that the enterprise that preparation appears on the market can evaluate through relative value in order to fix the appropriate share price of oneself, big Hit recreation 5 enterprises (JYP recreation, YG recreation, YG PLUS, NAVER, Kakao) as compare an object, computation gives vendibility of Big Hit recreation (EV) except the profit before with duty breath depreciation reachs amortize (EBITDA) "EV/EBITDA" (company value multiple) for 42.36 times, use this multiple the fair collect price that of cipher out of Big Hit recreation is now.

However, 5 enterprises of make choice of of Big Hit recreation are afraid somebody is the suspicion that promotes EV/EBITDA the value. It is Kakao, Naver above all the EV/EBITDA cost of two platform enterprise is higher, especially YG Plus company. Although the service such as Melon, Naver Music, Vlive is had below banner of Kakao, Naver, former subsidiary KakaoM also is engaged in acting art layout career, but relevant service is occupied in both whole sale than not quite, and dimensions of the market prise of both, enterprise and accrual water are average recreation of Yuan Sheng Big Hit.

It is EV/EBITDA value is as high as 63.25 times next, market prise is less than 300 billion Han Yuan's YG Plus to be able to be become compare an object, but EV/EBITDA is 21.07 times, have Weverse competition to apply Lysn, market prise the two 3 times tradition at YG Plus one of companies of 3 big manager SM entertainment company, be eliminated to comparing an object however besides, and reason is SM recreation be appointed to be dishonest open legal person. The personage inside course of study points out, appoint dishonesty fair showing legal person is only pure fair show defer, have nothing to do with the computation of company value. The personage also explains related Korea bourse say: "Be appointed to be dishonesty fair show legal person to cannot be in computation serves as in the process of company value compare an object, not (such) regulation. "Accordingly, this rejects argument also is to remain the place of deliberate.

If be opposite YG PLUS of the purify in bid company, include SM recreation to be calculated inside the EV/EBITDA of 5 companies, this one value will be reduced considerably to 33.92 times, big Hit recreational is fair collect is fiducial the price will fall to 110 thousand 2000 Han yuan. Some stockjobber recreation is in charge of a researcher also pointing out, "Eliminate SM recreation without reason in fact, but eliminated however, can saying only is to raise proper share price " . The personage also explains related some industry say: "The process that is in charge of a company from make choice of begins, will appropriate share price is calculated higher, how the increase of the will largest stockholder is the biggest change the essential factor with can be become main only. How the increase of the will largest stockholder is the biggest change the essential factor with can be become main only..

The ascendant momentum that because share price of Big Hit recreational was not achieved,expects at the outset, expect to be able to appear originally go up the Han Yu of situation share price also begins to steep fall. YG recreation and JYP recreation drop respectively 3850 Han Yuan (- 8.00%) and 2600 Han Yuan (- 7.23%) , with thirty-three thousand three hundred and fifty Han of forty-four thousand three hundred Han Yuanhe yuan clinch a deal; SM recreation (- 6.73% ) , FNC recreation (- 6.07% ) , Fantagio (- 4.01% ) , CUBE recreation (- 3.70% ) wait for Korea to act art layout company share price all also is in drop condition.

Here setting falls, prospective Big Hit will present what kind of share price to also become the issue that people cares most. Current, the share price of target of Big Hit recreational that bound of Korea negotiable securities raises formally also differ in thousands ways, the stockjobber that raises target share price clearly has 5, it is negotiable securities of United States forest respectively (160 thousand Han Yuan) , IBK invests negotiable securities (240 thousand Han Yuan) , contemporary car negotiable securities (264 thousand Han Yuan) , negotiable securities of friendly An Da (296 thousand Han Yuan) , finance invests Hanya (380 thousand Han. Disclose according to research center of SamSung negotiable securities, with open quotation price (270 thousand Han Yuan) for fiducial, the city of Big Hit is filled with rate (PER) it is 59.8 times about, it is other and main recreation SM (29.4 times) , JYP (31.7 times) , YG recreation (32.6 times) 2 times.

As we have learned, the sale last year is the Big Hit that held water 2005 416.7 billion Han Yuan (add up to a RMB about 2.443 billion yuan) , current net profit is 63.9 billion Han yuan (add up to a RMB about 375 million yuan) . Negotiable securities bound predicts, sale of Big Hit recreational will achieve 679.5 billion Han respectively with business profit this year yuan (add up to a RMB about 3.983 billion yuan) with 117.4 billion Han yuan (add up to a RMB about 688 million yuan) , increase respectively compared to the same period 63% with 83% .

Square when hertz expresses in ceremonially, "Also will forget those who comfort to be brought to everybody as music and artist henceforth first heart " , "Will develop energetically can affect now the " of enterprise of platform of lifestyle of world top class entertainment of everybody's life. The should become company of platform of world top class entertainment aspiration that says as to him whether come true, our wait and see what happens.

Topic content: Do you think Big Hit market prise by overmeasure?

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