Yuanta Securities Raises JYP Entertainments Target Price Amid Strong Q2 Performance
On the 14th, Yuanta Securities raised JYP Entertainments target price from 90,000 KRW to 100,000 KRW, driven by better-than-expected Q2 results. The firm believes that the companys leading artists will benefit from the ripple effect of the hit Netflix animation film K-Pop Demon Hunters (Kedehun) in the latter half of the year. The previous trading day closed at 75,700 KRW, indicating a potential upside of 32%.
Analyst Lee Hwan-wook noted, "The global tour activities of our main girl group, TWICE, are set to intensify in the second half of the year. Given the groups increased global recognition, there is also anticipation for additional performances in 2026." He further mentioned that the main boy group, Stray Kids, is expected to release two new global albums soon.
Lee also indicated that the Kedehun ripple effect is expected to continue, strengthening JYPs intellectual property (IP) licensing business and expanding merchandise (MD) offerings in collaboration with overseas partners, which is anticipated to positively impact performance. Kedehun is a Netflix animated film centered around K-pop and has recently become the second most viewed film in Netflix history.
In Q2, JYP Entertainment reported an operating profit of 52.9 billion KRW, a staggering increase of 466.4% compared to the same period last year. Revenue also rose by 125.5%, totaling 215.8 billion KRW, surpassing market expectations for both operating profit and revenue.
Regarding the performance, the analyst stated, "The increase in activities from leading artists has improved both scale and profitability. While re-contracting and rising costs for performances and content production are unavoidable, we have proven the leverage effect." He also highlighted that the operation of subsidiaries, such as Blue Garage, has been optimized, successfully enhancing profitability.
Additionally, he mentioned the upcoming performances of Stray Kids, Nmixx, and Day6 in Q2, which are expected to further contribute to the companys positive outlook.
Analyst Lee Hwan-wook noted, "The global tour activities of our main girl group, TWICE, are set to intensify in the second half of the year. Given the groups increased global recognition, there is also anticipation for additional performances in 2026." He further mentioned that the main boy group, Stray Kids, is expected to release two new global albums soon.
Lee also indicated that the Kedehun ripple effect is expected to continue, strengthening JYPs intellectual property (IP) licensing business and expanding merchandise (MD) offerings in collaboration with overseas partners, which is anticipated to positively impact performance. Kedehun is a Netflix animated film centered around K-pop and has recently become the second most viewed film in Netflix history.
In Q2, JYP Entertainment reported an operating profit of 52.9 billion KRW, a staggering increase of 466.4% compared to the same period last year. Revenue also rose by 125.5%, totaling 215.8 billion KRW, surpassing market expectations for both operating profit and revenue.
Regarding the performance, the analyst stated, "The increase in activities from leading artists has improved both scale and profitability. While re-contracting and rising costs for performances and content production are unavoidable, we have proven the leverage effect." He also highlighted that the operation of subsidiaries, such as Blue Garage, has been optimized, successfully enhancing profitability.
Additionally, he mentioned the upcoming performances of Stray Kids, Nmixx, and Day6 in Q2, which are expected to further contribute to the companys positive outlook.
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