[ARTICLE] 250210 SM, after parting ways with Lee Soo-man, is aiming for 1 trillion won in sales with its first 5th-generation girl group Can the new girl group, Hearts2Hearts lead SM's growth? SM Entertainment's first 5th-generation girl group, Hearts2Hearts, is drawing attention as it prepares for its official debut on the 24th. Hearts2Hearts is SM's new girl group, set to debut nearly five years after aespa, which made its debut in 2020. SM plans to surpass 1 trillion won in sales for the first time in its history based on the successful debut of Hearts2Hearts. As of 2023, SM recorded sales of 961 billion won. SM's first 5th-generation girl group 'Hearts2Hearts' The performance of an entertainment company is driven by the activities of its artists. In particular, when the growth of new artists complements the success of established ones, rapid growth is often observed. This is why SM's first girl group debut in five years is highly anticipated. Currently, SM is active with the 4th generation girl group aespa, the 2nd generation Girls' Generation (debuted in 2007), and the 3rd generation Red Velvet (debuted in 2014). The 1st generation was SES. The eight-member girl group Hearts2Hearts will kick off their promotions on the 24th with the release of their first single, 'The Chase.' They previously dropped a short teaser video on YouTube and other social media platforms on the 3rd, capturing the attention of fans. Although Hearts2Hearts has yet to reveal their exact concept, they are expected to be a girl group with a warm and emotional style, much like their name suggests. 'Hearts2Hearts' implies they will connect with fans through various emotions and sincere messages. This concept is clearly different from aespa's, which has a strong image. Specifically, as an eight-member girl group with an average age of 17, they are expected to promote with a vibe that resonates with friends of that age. SM explained, "Hearts2Hearts pursues a mysterious and beautiful world of music." The market response to Hearts2Hearts has been positive, with the stock price reacting first. SM's stock price, which was in the low 70,000 won range in early January, rose to 87,600 won on the 7th. Expectations surrounding the debut of the new girl group after five years played a key role SM's performance is expected to rebound depending on whether Hearts2Hearts succeeds in the market. In the third quarter of last year, SM recorded sales of 242.2 billion won and an operating profit of 13.3 billion won. This represented a 9% decrease in sales and a significant 73.6% drop in operating profit compared to the same period the previous year. Annual sales are expected to reach 961 billion won in 2023. The securities industry estimates that sales in 2024 will be similar to the previous year, ranging from 960 to 980 billion won. SM plans to achieve 1 trillion won in sales and accelerate growth by 2025, driven by the activities of Hearts2Hearts. An entertainment industry insider stated, "It is time for SM to prove it can succeed without General Producer Lee Soo-man." source: translated by theH2HGLOBAL #Hearts2Hearts #하츠투하츠 #H2H @Hearts2Hearts