[Click eStock] "JYP Entertainment, H2 Performance Not Expected to Be Dim"

KTB Investment & Securities Issues 'Buy' Rating and 27,000 KRW Target Price... Closing Price on 14th at 21,400 KRW

TWICE, under JYP Entertainment (Photo by JYP Entertainment)

[Asia Economy Reporter Kum Boryeong] JYP Ent. is expected to deliver a not-so-dark performance in the second half of the year.

According to KTB Investment & Securities on the 15th, JYP Entertainment's first-quarter results showed sales of 34 billion KRW, operating profit of 13.4 billion KRW, and net profit of 11.3 billion KRW. These figures represent increases of 28.9%, 132.3%, and 78.6% respectively compared to the previous year.

Nam Hyoji, a researcher at KTB Investment & Securities, explained, "The method of recognizing sales in Japan has changed. Previously, when concerts and activities were held in Japan, it took 1 to 2 quarters for the results to be reflected, but from this quarter, the recognition method has changed to record them in the same quarter. Therefore, the revenue related to TWICE's Japan tour, which was expected to be reflected in the second quarter, was recognized in the first quarter, creating a surprise."

Other sales also increased by 135.1% year-on-year to 17.6 billion KRW. This was because tour-related MD revenue exceeded expectations at 8.5 billion KRW. TWICE's Japanese fan club membership continues to show an increasing trend.

Despite the reduction in artists' activities due to the COVID-19 pandemic, the analysis suggests that the second half performance will not be bleak. Researcher Nam said, "Even though there were no concerts in the 2nd and 3rd quarters due to COVID-19, operating profit did not decrease significantly because frequent comebacks by artists maintained album sales, and revenue based on artists' intellectual property (IP) continues to be generated. The estimated album sales for the 2nd quarter are 840,000 copies combined for GOT7, TWICE, Stray Kids, and DAY6, and considering sales up to April, it is judged to be sufficiently achievable."

KTB Investment & Securities gave JYP Entertainment a 'Buy' investment rating with a target price of 27,000 KRW. The closing price on the 14th was 21,400 KRW.

This content was produced with the assistance of AI translation services.