[Click eStock] "JYP Entertainment Lowers This Year's Earnings Forecast... Target Price Down"

Mirae Asset Securities analyzed on the 18th that it will downgrade the performance of JYP Ent. (JYP Enter) this year, stating that a decline in valuation is inevitable. The investment opinion 'Buy' was maintained, but the target price was lowered to 90,000 KRW.

Researcher Kim Gyu-yeon of Mirae Asset Securities stated, "We expect first-quarter sales to increase by 11% year-on-year to 131 billion KRW, and operating profit to rise by 2% to 43 billion KRW." Specifically, streaming revenue is expected to increase by 29% from last year to 14.4 billion KRW, and concert revenue is projected at 21.7 billion KRW.

Researcher Kim said, "There is a risk regarding the uncertainty of the timing of reflecting Japanese sales," and analyzed, "The excess revenue from concerts in the Americas region due to the contract renewal with Live Nation last year is expected to be deferred to the second half as RS revenue."

Researcher Kim revised down this year's sales, operating profit, and net income attributable to controlling shareholders by 5%, 4%, and 6%, respectively. He explained, "This is because the album division, which drove sales growth in 2023, is negative, and there is no rookie to offset the growth rate."

He added, "JYP Enter announced that it will focus on activities in Japan this year to improve profitability," and added, "The high valuation in 2023 was due to momentum in the U.S. market, so a decline in valuation is inevitable."