[Featured Stock] JYP Ent. Hits New High on Q3 Earnings Expectations

[Asia Economy Reporter Song Hwajeong] JYP Ent.'s stock price surged sharply on expectations for third-quarter earnings, hitting a new 52-week high during trading.

As of 9:51 a.m. on the 20th, JYP Ent. was trading at 47,400 KRW, up 3,500 KRW (7.97%) from the previous day. During the session, it rose to 47,800 KRW, setting a new 52-week high.

The expectation of strong third-quarter earnings is seen as the driving factor behind the stock price increase. Samsung Securities forecasted that JYP Ent.'s third-quarter sales would increase by 55.5% year-on-year to 53.8 billion KRW, and operating profit would rise 73.9% to 19.3 billion KRW, surpassing market expectations (17.1 billion KRW). Korea Investment & Securities also projected that JYP Ent.'s consolidated third-quarter sales would increase 54% to 53.2 billion KRW, and operating profit would grow 62% to 18 billion KRW, exceeding the market consensus by 10% in terms of operating profit.

Choi Minha, a researcher at Samsung Securities, said, "Since the beginning of the year, the industry has shown strength due to mergers and acquisitions (M&A), spectacular earnings improvements, and other positive factors, making JYP Ent. appear relatively underperforming. However, with active activities from affiliated artists and a dazzling lineup of new rookies, it is expected to enter a full-fledged re-rating phase."