Explosive popularity of 'Heartsping' sends production company's stock soaring
A scene from movie “Heartsping: Teenieping of Love” / Courtesy of SAMG Entertainment
The recent release of the movie, "Heartsping: Teenieping of Love," has caused the production company's stock to soar, as the Korean TV animation character, "Teenieping," has become a new sensation, captivating both children and adults.
According to the Korea Exchange, Wednesday, the stock price of SAMG Entertainment — the production company behind the animation series — closed at 17,160 won ($12.81), up 2.82 percent compared to the previous session.
It also displayed increases of 29.98 percent and 6.92 percent on Monday and Tuesday, respectively, on the secondary Kosdaq market.
SAMG Entertainment, a 3D kids' animation specialist founded in 2000, was listed on the Kosdaq in December 2022. The company owns the intellectual property (IP) rights to the character, generating revenues across various areas, including merchandise production.
A poster of "Heartsping: Teenieping of Love" / Courtesy of Showbox
The tremendous success of the domestic 3D animated film "Heartsping: Teenieping of Love" is driving the popularity of the stock.
It is a prequel to the TV series, featuring the beloved character Heartsping in the spotlight. The movie portrays the first meeting between Heartsping, the fairy, and Romi, the princess of the kingdom.
The movie is nearing 1 million viewers to rank among the top three highest-grossing animations in Korea.
Since the news of the movie's release broke in late June, SAMG’s stock price has seen a remarkable 77 percent rise over the past two months.
"Surpassing 1 million domestic viewers is significant, as the break-even point is estimated to be around 700,000 viewers," Shinhan Securities analyst Ju Ji-eun said.
The wave of positive reviews from viewers has further boosted the stock price. The film has become a trending topic on social media, with many highlighting its profound emotional impact not only on children but also on parents.
A user wrote on a movie review website, "I am a 37-year-old father, and I cried hard." Another user wrote, "My daughter didn't find it interesting, but I did, so I’m looking at the reviews."
The brokerage industry expects the stock's momentum to strengthen throughout the year due to its expanding IP. The film is set to release in China on Sept. 15 and is also scheduled to air on major terrestrial channels and over-the-top (OTT) platforms in Japan.
"Given the Teenieping series has been popular in China since its debut in 2021, the IP is already well-known and beloved. With the release timed to coincide with the holiday season, it's projected that the film could attract more than double the audience it had in Korea," Ju said.
"Profitability is expected to improve in the fourth quarter, which includes the peak holiday season including Christmas," Korea Investor Relations Service analyst Chae Yun-seok said.