12-member K-pop group EXO -- three Chinese members are currently inactive. (SM Entertainment)

SM Entertainment, the talent agency behind K-pop groups such as EXO, TVXQ and SHINee, will likely increase the number of Chinese concerts its contracted acts hold, according to a leading financial analytics firm.

"EXO is gaining attention in China," said analyst Jeong Hui-seok from Korea Investment & Securities Co. "SHINee, Super Junior are also consistently gaining popularity. This year, SM is reaching out to an anticipated 350,000 Chinese concert-goers -- up 54 percent from last year."

K-pop duo TVXQ (SM Entertainment)

Currently, 70 percent of SM's overseas profits come from Japan, which has been partially attributed to the weakening Chinese yen currency. TVXQ alone held six Japanese concerts as part of its ongoing world tour within the first quarter this year, which were attended by a total 650,000 fans.

However, SM chief Lee Soo-man is likely to reduce profits from Japan to 50 percent, while hoping to increase sales in China by 35 percent, said the market researcher.

"In the latter half of the year, SM will continue to expand its overseas concerts abroad, which we are already seeing in the second quarter this year," said Jeong.

K-pop boy group SHINee (SM Entertainment)

The move comes as SM plans to diversify its earning paths and increase overall sales and business profits to 25 and 35 percent, respectively, from last year.

"SM recorded its highest-ever sales of 286.98 billion won ($257.82 million) last year, but business profits have continued to decline since 2012," said Jeong. "Since contracted K-pop groups like TVXQ, EXO and SHINee are doing well, SM is likely to increase surplus activities both in Korea and abroad."

SM CEO plans to establish a subsidiary Chinese partner firm for more efficient business in China in the latter half of this year.

By Yoon Sarah (sarah356@heraldcorp.com)