Kiwoom Securities raised JYP Entertainment's target price by 9.4 percent to 58,000 won, as it expects to continue its growth through global expansion of active artists, making a steady new debut, achieving rapid profitability and launching local idols.
Kiwoom Securities said in a corporate analysis report, "We estimate that the continued strong record sales and strong music in the global market will continue following the previous quarter.".
According to Kiwoom Securities, JYP Entertainment's second-quarter sales are estimated at 41.9 billion won, up 22.7 percent from a year earlier. Its estimated operating profit is also up 29.8 percent to 11.8 billion won.
According to the Korea Exchange, JYP Entertainment's share price fell 0.86 percent this month to 40,150 won based on the closing price on the 21st, a different trend from the 1.17 percent rise in the KOSDAQ index during the same period. It is low even compared to its rivals HYBE (2.05%), SM (3.40%) and YG Entertainment (9.77%).
Nevertheless, the outlook is bright because the supply of vaccines is expected to boost the contact industry in the second half of this year.
Kiwoom Securities said "The watch of entertainment is focused on the timing of resumption of contact business such as concerts and platform business"
"JYP Entertainment is looking forward to the growth of newcomers such as TWICE and Stray Kids, which expanded its fandom globally during the COVID-19, and the fandom effect of NiziU, which successfully debuted locally.". Kiwoom Securities added.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
