DAISHIN SECURITIES noted on the 7th that the large-scale concert of Stray Kids in the second quarter of this year is expected to improve performance for JYP Entertainment (JYP Ent.), and the announcement of a concert for Twice will also serve as a positive performance momentum. They maintained a target price of 85,000 won and an investment opinion of 'buy'. The closing price of JYP Ent. on the last trading day was 70,800 won.
DAISHIN SECURITIES expects that JYP Ent.'s consolidated revenue and operating profit in the first quarter of this year would record 118.4 billion won and 13.8 billion won, respectively, down 13.2% and 58.9% compared to the previous year. This is influenced by one-off expenses, including promotional costs related to the initial debut of Kickflip and remaining costs of about 2 billion won related to 'Duddanttara.'
Research analyst Im Su-jin from DAISHIN SECURITIES forecasted, "The absence of major intellectual property (IP) new guarantees and activities centered on small-scale concerts will lead to a continued decline in the profit margin following the fourth quarter of last year." However, Analyst Im evaluated that while JYP Ent. recorded performance below market expectations due to activities focused on low-tier IP in the first quarter, the growth potential of low-tier IP was reaffirmed.
Analyst Im said, "Kickflip exceeded expectations with accumulated sales of 320,000 copies of their debut album, and NMIXX has shown a marked increase in light fandom, recording a rebound in album sales. In the case of Nexzi, the recently released album recorded 240,000 copies, showing nearly double the growth compared to the previous work." He anticipated that if the growth trend continues in the second half of the year, the discount factor would be resolved.
He stated, "In the second quarter, large-scale concert schedules for Stray Kids will be concentrated, leading to a full-scale improvement in performance," and added, "In the third quarter, the release of Twice's new album and news of a new world tour are expected to positively affect performance and valuation of corporations."