TIME K-Culture Active ETF shifted its top holdings as of the 8th, with Samyang Foods (6.79%) and Hugel (5.74%) now leading the portfolio, according to financial investment industry data. Three months prior, beauty brand APR held the top position at 9.13%, followed by game developer Pearl Abyss at 8.79% and entertainment company HYBE at 7.35%. The reallocation reflects Samyang Foods' strong overseas sales performance driven by its Buldak brand, which has evolved from a spicy noodle challenge into a global content-driven intellectual property. This marks a departure from the traditional K-culture investment formula centered on large entertainment companies managing K-pop idols.
As of the 8th, Samyang Foods held the highest weighting in the ETF at 6.79%, followed by Hugel at 5.74%, beauty brand Medicube's APR at 5.70%, and Black Desert developer Pearl Abyss at 5.51%. Entertainment agencies HYBE and SM held relatively lower weightings at 5.16% and 4.55% respectively. This contrasts sharply with the portfolio composition from three months earlier, when APR led at 9.13%, followed by Pearl Abyss at 8.79% and HYBE at 7.35%. At that time, entertainment agencies JYP Entertainment (4.50%) and YG Entertainment (4.29%) also ranked in the top holdings.
Samyang Foods Reports Double-Digit Growth Across US, China, and Europe Markets
Samyang Foods' Q2 revenue reached an estimated 746.4 billion won with operating profit of 176.8 billion won, representing year-over-year increases of 35.0% and 47.3% respectively, according to AI investment platform Epic AI. The company's overseas operations drove this performance. KB Securities estimated that Samyang Foods' US subsidiary revenue increased 12.3% quarter-over-quarter in Q2, with sales growth centered on new channels including Target and Kroger amid favorable exchange rates, according to KB Securities researcher Ryu Eun-hye. The China subsidiary revenue rose 13.2% quarter-over-quarter while managing inventory stability amid yuan appreciation. European subsidiary revenue increased 7.6% quarter-over-quarter.
Customs data showed Samyang Foods' cumulative exports for April-May increased 24% year-over-year. The domestic launch of 'Uji Ramen' contributed to sales growth, while the Milyang No. 2 factory ramped up operations. Financial Supervisory Service data indicated that the Milyang factory, dedicated to export production, achieved a noodle manufacturing facility utilization rate of 83.2% in Q1.
Entertainment Stocks Record 30-40% Declines as Brokerage Firms Lower Target Prices
Entertainment sector stocks experienced sustained declines. Among 10 brokerage reports on HYBE issued from the 2nd, seven lowered target prices while none raised them. LS Securities researcher Park Sung-ho noted that "junior artists including Kotis and Katseye are showing very steep growth trajectories," but added that "excessive stock price adjustments continue due to recently sharply lowered investor sentiment." HYBE and SM stocks declined 33.53% and 40.48% respectively year-to-date. JYP Entertainment shares fell 32.13%, while YG Entertainment dropped 40.34%.
FAQ
What caused Samyang Foods to become the top holding in TIME K-Culture Active ETF?
Samyang Foods reached the top position with a 6.79% weighting as of the 8th, driven by strong overseas sales performance of its Buldak brand. The company's Q2 revenue reached an estimated 746.4 billion won with operating profit of 176.8 billion won, representing year-over-year increases of 35.0% and 47.3% respectively. US subsidiary revenue increased 12.3% quarter-over-quarter, China subsidiary revenue rose 13.2%, and European subsidiary revenue grew 7.6%.
How did entertainment company stocks perform compared to Samyang Foods?
Entertainment stocks declined significantly while Samyang Foods gained prominence in the ETF. HYBE shares fell 33.53% year-to-date, SM dropped 40.48%, JYP Entertainment declined 32.13%, and YG Entertainment fell 40.34%. Among 10 brokerage reports on HYBE issued from the 2nd, seven lowered target prices while none raised them, reflecting weakened investor sentiment toward the entertainment sector.
