[Click eStock] "JYP Entertainment, Market Concerns Over Initial Sales Slump Are Excessive"

ITZY New Album, First-Week Sales Down 61% Compared to Previous Release
"Too Early to Judge Artist's Growth Phase"
Focus on Growth in Music and Performance Sectors and Localized Group Debut

NH Investment & Securities analyzed on the 17th that market concerns over JYP Ent.'s initial sales (first-week album sales) slump are excessive and that positive factors still exist. They maintained a 'Buy' rating and a target price of 140,000 KRW. JYP's closing price on the previous day was 82,000 KRW.

Researchers Hwajung Lee and Seungjun Lee of NH Investment & Securities stated, "The initial sales of ITZY's new album released on the 8th amounted to 320,000 copies (compared to the previous 820,000 copies), raising concerns about the initial sales of NMIXX's new album released on the 15th as well," adding, "Although the early sales trend is disappointing, it is premature to judge the artist's growth phase less than 10 days after release." They continued, "Since ITZY has a large overseas fandom, a significant amount of sales is recorded after the initial sales period," and "Although the previous album's initial sales were 820,000 copies, the final sales reached 1.15 million copies, which is in the same context."

ITZY recorded initial sales of 320,000 copies for their album 'BORN TO BE,' released on the 8th. This represents a sharp 61% decline compared to the previous initial sales of 820,000 copies. Since their debut in 2019, ITZY has consistently achieved 'career highs' by surpassing the sales of their previous albums with each new release, so this shockwave also affected the stock price. On the first trading day after the initial sales tally was completed, the 15th, JYP's stock price fell by 7.87%. It dropped another 7.87% the following day. Reasons cited for the decline in initial sales include the reduction of album versions from 20 to 6, the absence of Lia?who is focusing on treatment due to health issues?from this album's promotions, and the possibility that Hanteo Chart, which tracks initial sales, may not have counted some overseas export volumes.

The two researchers said, "Stray Kids' new album, which showed negative growth in initial sales last November, continued stable sales after the initial sales period, with fourth-quarter sales reaching 4.19 million copies, 490,000 copies higher than the initial sales," adding, "Rather than being fixated on the initial sales slump, it is time to focus on the rebound in initial sales for the next release and the potential expansion of future concert scales." They especially forecast that concerts and music streaming will drive JYP's growth. The debut of the U.S.-based girl group VCHA and the China-based boy group Project C was also positively evaluated for their potential to expand the global market.

Meanwhile, JYP's fourth-quarter 2023 sales are projected at 168.7 billion KRW, with operating profit at 53.5 billion KRW. Compared to the same period in 2022, sales increased by 46%, and operating profit rose by 108%. Researchers Hwajung Lee and Seungjun Lee stated, "Although Stray Kids' new album sales were somewhat disappointing, the effects of deferred revenue related to TWICE and Stray Kids' concerts and album sales in Japan during the second and third quarters will be reflected."

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