[Into the Stock] Will the 'Entertainment King' JYP's Run Continue?

KOSDAQ Drops Over 30% but Rises 18%
Market Cap Ranking Jumps from 27th to 9th
Strong H2 Performance Expected Led by 'Stray Kids'

[Asia Economy Reporter Minji Lee] JYPEnt. continues its relentless run in the KOSDAQ market. The reason lies in the securities industry's positive performance reviews, and as it swiftly claimed the title of 'Entertainment King,' investors are increasingly interested in whether it can bear the weight of the crown.

As of 9:30 AM on the 26th, JYP Entertainment was down 1.34% at 59,000 KRW. It is analyzed that some sell orders emerged as investor sentiment toward growth stocks weakened due to the impact of the U.S. Federal Reserve's interest rate hikes. However, looking at a one-month period, the stock only fell about 2% from 60,700 KRW on the 26th of last month to 59,000 KRW, outperforming the KOSDAQ return (-11%) by a wide margin. On an annual basis, while the KOSDAQ index return dropped more than 30%, JYP Entertainment rose 17.9%.

As more people want to buy the company's shares, its market capitalization surpassed 2 trillion KRW, and its market cap ranking jumped 18 places from 27th on January 3rd this year to 9th on the 23rd. Among KOSDAQ entertainment companies, it now has the largest market cap, surpassing CJ ENM (1.77 trillion KRW), the largest media company in Korea. The lifting of outdoor mask mandates helped resume artists' performances that had been subdued due to COVID-19. Additionally, increased overseas fans' interest in K-POP boosted sales of previously released albums (catalog sales), which was also positive. As positive signals emerged in the sector, the market cap ranking of competitor SM Entertainment rose 14 places from 30th to 16th during this period.

The securities industry expects solid performance to continue in the second half of the year. The most anticipated artist at this point is the boy group ‘Stray Kids,’ set to make a comeback on the 7th of next month. Following the proven album sales power of girl groups TWICE and ITZY, market expectations for additional performance growth are increasing. Ha-jeong Kim, a researcher at Daol Investment & Securities, analyzed, "With BTS on hiatus, the boy group landscape is expected to change significantly. Given that Stray Kids' catalog sales surged in August's boy group album shipments and their comeback is imminent, this could provide short-term upward momentum for the stock."

It is also worth noting that the entertainment company has a packed concert schedule through next year. Global tours centered on Japan and the U.S. by ITZY, NiziU, and others are planned, and Stray Kids' global tour, which started in the second half of this year, will continue into the first half of next year, likely increasing concert revenue contributions to performance. Jin-ah Ahn, a researcher at Ebest Investment & Securities, said, "Sales from the newly launched JYP Shop (goods/merchandise) in June have shown a trend of rising alongside large-scale tours, contributing to profitability enhancement. Maintaining stable cost of sales and selling and administrative expenses compared to other entertainment companies is also a strength."