[Edaily Reporter Kwon Oh Seok ] Yuanta Securities Korea announced on the 13th that it is maintaining its “Buy” rating on JYP Entertainment Corporation(035900)(JYP Entertainment) but lowering its target price from 70,000 won to 60,000 won.

Lee Hwan-wook, an analyst at Yuanta Securities Korea, stated, “Starting with the release of ‘Stray Kids’ (hereinafter SKZ) 10th mini-album, their fourth world tour is expected to drive an improvement in the company’s overall performance,” adding "While the Asian tour dates announced so far (9 cities, 18 shows) fall somewhat short of market expectations, given the sales trend of back catalog titles in Western markets during the first half of this year, the announcement of additional Western tours in the first half of next year is expected to serve as momentum for a stock price rise."
He continued, “In conjunction with a strengthened merchandise strategy, there is high visibility for the IP to achieve its best-ever performance,” but added, “Considering the disappointing growth of newer IPs, the uncertainty surrounding the activities of the established IP ‘TWICE,’ and the fact that SKZ’s military service hiatus will begin in the second half of 2027, the outlook for future stock price growth is not straightforward.”
On a consolidated basis, second-quarter revenue was 183.1 billion won (down 15.1% year-over-year), and operating profit was 310 won (down 41.4%), both falling short of market consensus (revenue of 201.0 billion won, operating profit of 38.1 billion won). The analyst explained, “Top-line contraction was inevitable due to the high base effect from the same period last year, and the decline in profitability was further exacerbated by sluggish sales per album.”
He added, “Total album sales are estimated at around 2.55 million copies, and the disappointing sales volume relative to the number of releases led to a burden on the company’s overall content production costs,” noting that “sales exceeded previous estimates due to the continued strong sales of back catalog titles from SKZ, the company’s flagship boy group IP, following the previous quarter.”
In terms of live performances, the total attendance was estimated at around 950,000, including 23 TWICE World Tour shows, 2 2PM Japan Dome Tour shows, and 4 NIZU Japan Dome Tour shows. The analyst added, “The improvement in profits resulting from small-scale, multi-show concerts was limited,” noting, “Although strong sales of merchandise for the TWICE tour, an increase in the number of city pop-up events, and robust sales of SKZ-themed merchandise continued, results fell short of market expectations due to the exclusion of online merchandise sales from the figures.”