Meritz Securities on the 15th said JYP Entertainment (JYP Ent.) is expected to continue its sales growth as the pipeline of long-running intellectual property (IP) such as TWICE expands. It raised its target price to 98,000 won from 94,000 won and maintained a "buy" rating. JYP Entertainment's closing price in the previous session was 73,900 won.
For the third quarter of this year, JYP Entertainment's consolidation-based revenue and operating profit are estimated at 233.3 billion won and 51.7 billion won. That is up 36.9% and 6.9%, respectively, from a year earlier.
On albums, Stray Kids, TWICE, and KickFlip comebacks are reflected. For concerts, eight remaining European tour dates for Stray Kids and 12 world tour dates including TWICE's Japan dome tour were held. Kim Min-young, an analyst at Meritz Securities, said, "Although tour revenue decreased from the previous quarter, profitability can be defended by increased sales of popup MD and excess revenue related to European shows, as well as higher sales of Stray Kids and TWICE full-length albums."
Stray Kids recorded 3.03 million in first-week sales for its fourth full-length album, increasing sales from the previous release. Kim emphasized that as sales released during the tour increased, it proved a virtuous cycle that extends to concerts, MD, digital music, and albums.
Focus was also placed on the view that TWICE will continue its North America and Europe tour next year and drive performance growth. Kim said, "Additional digital music and MD sales growth is also expected thanks to the 'K-pop Demon Hunters' boost," adding, "NMIXX will also begin its first world tour from Nov. and enter a phase where fandom expansion becomes full-fledged."
Kim added, "Advanced strategies are underway to maximize MD sales, including global licensing collaborations with Tamagotchi, Sanrio, and Bape, product diversification, cost efficiency through platform internalization, and opening a store in the fan shop (FANS SHOP) on QQ Music."