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| ▲This photo provided by JYP Entertainment shows TWICE at the stage of the 'Colbert Show.' (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL August, 17 (Yonhap) -- South Korean security firms increased target stock price of JYP on Wednesday based on its Earnings Surprise within second quarter of 2022.
Samsung securities increased the target stock price of JYP from 72 to 80 thousand won, Eugene investment increased their target price from 72 to 78 thousand won, Cape Investment and Securities increased their target price from 72 to 77 thousand won, SK securities increased their price from 65 to 75 thousand won, NH securities increased their price from 68 to 75 thousand won and more on Wednesday.
Entertainment agency JYP released their half year report which included operating profit of 24.3 billion won which compared to 2021 showed 152.9 percent increase. JYP’s operation profit was 30 percent above expectation of Yonhap Infomax.
According to the report, total sales from JYP’s within second quarter was 67.8 billion won which was 67.1 percent higher than the record of 2021.
Surprise increase in album sales, streaming sales, and offline concerts lead the dramatic increase in profit.
Especially, security firms increased their target price of JYP’s stock based on the expectation that JYP will continue on with their success throughout the year by showcasing fresh K-pop girl groups.
“Expansion of individual artist’s fandom was showcased through the exterior growth, and through efficient cost structure it showed profit leverage.” Choi Min-ha, researcher of Samsung Securities described the current situation.
Choi Min-ha continued on by stating “We rearranged the net profit from 6 percent to 8 percent based on the expectation of JYP’s future growth and their release of new K-pop groups which will once again bring growth to their net profit.”
“Verified net profit growth based on the K-pop artists World Tour, increased in album sales and steep growth of intellectual properties was reflected on the rearrangement.” Park Da-gyeom, researcher of Do Global Best Securities, expressed his understanding of the current situation.
Moreover, researcher of SK securities, Nam Hyo-ji stated “We are expecting positive outcomes from all of the K-pop artist from third quarter of 2022.” adding “Relatively young artists who have not yet to hit their 7 year mark within the industry’s activities will be reflected through the quarterly statements, therefore we are rearranging up to 14.1 percent of expected operation profit of 2023.”
Collaboration with Universal Music’s subsidiary label Republic Records was emphasized as one of the factors to lead the profit growth.
“Solidifying their grounds in western countries through the synergy created by collaborating with subsidiary label Republic Record, profit is showing positive growth.” announced researcher Lee Hwa-jung from NH securities.
Researcher Lee Hyun-ji from Eugene investment also described the current situation by stating “K-pop artist from audition programs who have accumulated their fan base even before they debut will expedite the process of attracting profit.” adding “Collaborative work with Republic Record, which is leading a fast expansion throughout the North American market is one of the factors for the reorganization of the price.”
(This article is translated from Korean to English by Joonha Yoo)
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