[Click e Stocks] "JYP Ent., Q4 Earnings Below Expectations"

Stray Kids swept the '5 Rookie Awards'. Photo by JYP

[Asia Economy Reporter Song Hwajeong] KB Securities maintained a 'Buy' rating and a target price of 65,000 KRW on JYP Ent. on the 17th, stating that although the company's Q4 earnings last year are expected to fall short of market consensus, the pipeline is expected to expand with the debut of three new artist teams this year.

KB Securities estimated JYP Ent.'s Q4 consolidated revenue at 58.4 billion KRW, a 40.1% increase compared to the same period last year, and operating profit at 14.5 billion KRW, up 38.4%. Researcher Lee Seonhwa of KB Securities explained, "Operating profit is expected to fall short of the consensus of 16.8 billion KRW by 13.6%. Although the record-high album sales were broken again in Q4 following Q3, one-time costs related to the Loud Project and HR consulting expenses caused operating profit to underperform market expectations."

The release of Stray Kids' album, which became a million-seller, and overseas activities of major artists such as TWICE, 2PM, ITZY, and NiziU are expected to drive external growth this year. Lee said, "TWICE has seven concerts scheduled in North America in February, and the world tour continues with two performances at Tokyo Dome in April. With the reopening, growth in world tours, MD products (planned merchandise), and content sales of major artists is expected."

The pipeline is expected to expand with the debut of three new artist teams. In December last year, Xdinary Heroes debuted and plans to focus on performance-centered activities. In February, the seven-member girl group NMIXX, known for their blind package, will debut, and a Loud Project boy group is scheduled to debut within the year. Lee added, "Investments in new businesses are also actively underway. Besides the NFT business with Dunamu and the metaverse business with DearU, we are participating as SI (strategic investor) and FI (financial investor) in various companies including the metaverse company For My Po."