[Edaily Reporter Kwon Oh Seok ] SANGSANGINVESTMENT&SECURITIES announced on the 19th that it is maintaining its “Buy” rating on JYP Entertainment Corporation(035900)(JYP Entertainment) but lowering its target price from 60,000 won to 52,000 won.

Lee Na-ra, an analyst at SANGSANGINVESTMENT&SECURITIES, stated, “We forecast third-quarter earnings at 237.3 billion won in revenue and 41.1 billion won in operating profit, representing downward revisions of 4.8% and 7.3%, respectively, compared to our previous estimates. We have also revised down revenue forecasts for 2026 and 2027 by 5.6% and 17.7%, respectively, and operating profit forecasts by 8.0% and 20.0%, respectively,” he explained, adding, “TWICE’s contract renewal and the announcement of Stray Kids’ 2027 world tour schedule are still pending.”
He projected that third-quarter earnings would fall short of consensus estimates. The analyst emphasized, “In the third quarter, the cost burden increased due to 16 domestic concerts, and there is also a base effect since the excess revenue from Stray Kids’ Western tour—which was reflected in the same period last year—is absent this year,” adding, “Furthermore, a portion of the Western sales volume for Stray Kids’ new album and sales from the Tokyo pop-up merchandise are expected to be deferred to the fourth quarter.”
He continued, “Overall, as activities for established IPs in the second half of the year are scaled back compared to 2025, annual revenue for 2026 is expected to decline by 7.3% year-over-year to 761.5 billion won.”
Looking at the number of tours and album sales, the growth potential of newer IPs has not yet materialized. He advised, “As the enlistment dates for Stray Kids approach and TWICE’s contract renewals are underway, newer IPs must fill the void left by the more established ones.”
He added, “With new IPs being introduced every year since 2024, the next-generation lineup has expanded. As NMIXX—a newer IP—is set to make its official debut in Japan in the fourth quarter and begin full-scale activities there in 2027, this is a good time to anticipate an increase in their contribution.”