JYP Entertainment (JYP Ent.) shares are weak early in the session on the 18th. The poor performance in last year's fourth quarter and analysts' expectations that the stock will undergo adjustments until confirming revenue recovery are seen as influencing factors.
As of 9:33 a.m. on the same day, JYP Ent. is trading at 65,800 won, down 3,900 won (5.6%) from the previous trading day.
According to JYP Entertainment's business report disclosed after the market closed the previous day, the company recorded 199.1 billion won in revenue and 36.9 billion won in operating profit in the fourth quarter of last year. Revenue increased by 27% compared to the previous year, but operating profit actually decreased by 3%.
With regard to this, analysts' predictions diverged. Heungkuk Securities and Hana Securities on this day downgraded their target prices for JYP Entertainment by 10.5% (from 95,000 won to 85,000 won) and 4.3% (from 94,000 won to 90,000 won), respectively.
Lee Gi-hoon, a researcher at Hana Securities, noted, “The company lowered the target price due to last year's performance falling short and the difficulty in convincing investors regarding the subsidiary Blue Garage (formerly JYP360) harming revenue,” adding, “While Stray Kids is set to hold concerts at an all-time high level, any further stock price decline is limited, but it will undergo a period of adjustment for the time being.” On this day, Hana Securities excluded JYP Entertainment from its top-pick stocks.
In contrast, Daishin Securities and NH Investment & Securities raised their target prices for JYP Entertainment by 13.3% (from 75,000 won to 85,000 won) and 5.6% (from 90,000 won to 95,000 won) respectively. Leehwa Jeong, a researcher at NH Investment & Securities, stated, “Initial investment costs are involved concerning subsidiaries, and last year's fourth quarter performance fell below consensus, but fifth-generation artists NEXZ and Kickflip are entering a full monetization stage.”