[Featured Stock] JYP Ent. Surges Over 10% on 1Q Surprise Earnings

JYP Ent. is showing a surge of over 10% in the early trading session on the 16th. This follows an ‘earnings surprise’ that exceeded market expectations in the first quarter results announced the previous day.

As of 9:06 AM on the day, JYP Ent. is trading at 108,000 KRW, up 13.09% compared to the previous trading day on the KOSDAQ market.

In the first quarter results announced the previous day, JYP Ent. reported consolidated sales of 118 billion KRW and operating profit of 42 billion KRW. The operating profit significantly exceeded the market consensus of 27.6 billion KRW.

Accordingly, Meritz Securities raised the target price for JYP Ent. from 95,000 KRW to 120,000 KRW. Hana Securities also raised their target price from 91,000 KRW to 130,000 KRW, and Kiwoom Securities increased theirs from 83,500 KRW to 120,000 KRW. Other upgrades include Hyundai Motor Securities (66,000 KRW → 110,000 KRW), Eugene Investment & Securities (98,000 KRW → 125,000 KRW), NH Investment & Securities (110,000 KRW → 140,000 KRW), Kyobo Securities (110,000 KRW → 126,000 KRW), Samsung Securities (92,000 KRW → 128,000 KRW), and Hanwha Investment & Securities (115,000 KRW → 135,000 KRW).

Park Su-young, a researcher at Hanwha Investment & Securities, stated, “JYP Ent.’s performance exceeded both market expectations and our estimates,” adding, “We maintain our top pick opinion within the industry due to the steep growth in the North American region.”

Lee Hwa-jung, a researcher at NH Investment & Securities, also analyzed, “Thanks to the expanding fandom size of major artists in the U.S. and China, the company’s performance strength is also improving,” and noted, “With the release of promotional content for the U.S. girl group (A2K) at the end of May, the export of the artist development system to Western markets has entered a full-scale expansion phase.”