[Click eStock] "JYP Ent., Strong Existing Lineup Plus Rookie Growth Momentum"

[Asia Economy Reporter Kwon Jaehee] NH Investment & Securities maintained its 'Buy' rating and target price of 85,000 KRW for JYP Ent. on the 31st.

JYP Ent.'s consolidated Q4 sales reached 98.4 billion KRW, and operating profit was 29.6 billion KRW, representing increases of 54% and 81% year-on-year, respectively. These figures also met market expectations.

The strong Q4 performance was driven by Stray Kids' record-breaking album sales. Stray Kids' 7th mini album 'MAXIDENT' surpassed 3 million copies sold, and the growth in Chinese fandom group purchases was also notable. With the expansion of JYP Ent.'s major artists' presence in the relatively weak Chinese market confirmed, benefits are expected when the Chinese concert market reopens. In the case of NiziU, from August, they conducted a total of 16 arena tours and 4 dome tours in Japan, but only the 14 arena tours held in Q3 are expected to be reflected in the results.

JYP Ent.'s strong existing lineup and new lineup highlight the prolonged lifespan of existing artists and steady growth of rookies. TWICE remains strong not only in its main market Japan but also in Western fandoms, while Stray Kids demonstrated an overwhelming fandom size with sales exceeding 3 million copies. As for the new lineup, promotional content related to the U.S. girl group (A2K) is scheduled to be released on YouTube in February. Subsequently, a total of four rookie groups are expected to be unveiled: a Korean boy group (LOUD audition debut team), a Chinese boy group (Project C), and a Japanese boy group (NiziU Boy). The artist development system, previously confirmed through the Japanese girl group (NiziU), has entered a phase of global expansion into export markets such as the U.S. and China.

Researcher Lee Hwajeong of NH Investment & Securities analyzed, "Q4 operating profit is expected to meet consensus due to Stray Kids' record-breaking sales and the deferred revenue recognition from NiziU's Japan tour," adding, "The acceleration phase of exporting the artist development system has begun."