[Click eStock] "From TWICE to Tour Resumption... JYP Begins Record-Breaking Performance"

Achieving Record Highs Mainly Through Albums... Greater Growth Potential with Concert Resumption

[Asia Economy Reporter Minwoo Lee] Thanks to the high growth in overseas music sales, JYP Ent. (JYP Entertainment) recorded its highest-ever performance in the third quarter of this year. Starting from the fourth quarter, with TWICE leading the way, each artist is expected to actively promote and resume offline performances, projecting additional performance growth.

On the 16th, Eugene Investment & Securities raised JYP Entertainment's target price by 21.2% to 63,000 KRW and maintained a 'Buy' investment rating. The closing price the previous day was 53,300 KRW.

JYP posted sales of 57.3 billion KRW and operating profit of 18.2 billion KRW in the third quarter of this year, increasing by 65.5% and 63.9% respectively compared to the same period last year. These figures also exceeded market consensus estimates by approximately 7.2% and 2.4%, respectively.

Researcher Hyunji Lee of Eugene Investment & Securities explained, "Stray Kids led album sales while the high growth trend in overseas music sales continued, resulting in record-breaking performance. However, one-time costs related to content production for the debut of three rookie groups and the 'LOUD Project' were reflected, so operating profit generally met consensus, but excluding these, it is estimated to significantly exceed consensus."

Album sales totaled 2.04 million copies, with Stray Kids accounting for 1.3 million and ITZY for 350,000. Overseas-centered content sales, including 4.1 billion KRW from YouTube revenue, also showed an increasing trend, demonstrating solid profitability.

The fourth quarter is expected to see further growth in performance as offline concerts are set to resume in earnest. TWICE, Stray Kids, ITZY, 2PM, and NiziU are all scheduled for active promotions. In particular, TWICE surpassed 700,000 pre-orders for their third full-length album, setting a new personal record. Considering the year-end repackaged album, it is estimated that sales will easily exceed one million copies. Additionally, starting with three domestic offline concerts at the end of the year, a five-show U.S. tour is confirmed through the end of February next year. Depending on the COVID-19 situation, additional tour dates may be added in the second half of the year.

NiziU is also preparing a large-scale tour in Japan next year. ITZY is understood to be planning album releases and tours mainly in Japan and the U.S. Stray Kids is also expected to have potential for overseas tours based on their solid fan base in the U.S. and South America.

Researcher Lee emphasized, "The rookie boy band 'Xdinary Heroes' is set to debut at the end of this year, and four more groups are scheduled to debut over the next two years, providing the richest rookie momentum."