[Click eStock] "JYP Resumes China Business with Hanhanryeong Lift...Expecting Performance Growth"

[Asia Economy Reporter Park Jihwan] Hyundai Motor Securities maintained a 'Buy' investment rating and a target price of 31,000 KRW on the 15th, stating that JYP Entertainment is at a point where stable earnings flow and the lifting of the Hanhanryeong (THAAD) ban allow the resumption of business in China.

Yoo Sungman, a researcher at Hyundai Motor Securities, said, "The deferred sales of TWICE's Japan MD will be reflected in the fourth quarter, and the balanced activities of major artists such as GOT7 and Stray Kids' comebacks are expected," adding, "Especially this year, the reopening of the Chinese market will make it a meaningful year."

According to Hyundai Motor Securities, JYP's sales in the fourth quarter of last year are expected to increase by 5.9% year-on-year to 38.5 billion KRW. Operating profit is forecasted to rise by 0.7% to 9.9 billion KRW.

Researcher Yoo stated, "Starting this year, albums from TWICE and ITZY will be released, and ITZY will enter the profit-generating phase this year, embarking on full-scale overseas tours including Southeast Asia," adding, "the Japan NIZI Project will also be conducted in the first half of this year, raising expectations for another momentum."

He said, "Recently, a Korea-China joint venture company for Hallyu performances in China was established, and in the overall atmosphere of the lifting of the Hanhanryeong ban, meaningful earnings growth is possible if business in China resumes."