[Click eStock] "JYP Entertainment, Low Tenure Lineup Performance Slumps... Target Price Down"

NH Investment & Securities analyzed on the 19th that JYP Entertainment shows noticeable weaknesses compared to competitors in terms of long-term growth potential. Accordingly, they maintained a 'Buy' investment rating but lowered the target price to 86,000 KRW.

Researcher Ihwa Jeong from NH Investment & Securities stated, "Despite the steady growth of the main lineup, the low-tier lineup, which is expected to drive mid- to long-term growth, has shown somewhat disappointing performance compared to competitors, reducing its investment appeal." She emphasized, "A clear rebound in sales of the low-tier lineup NMIXX or significant success of new debutants in the second half of the year is necessary."

It is fortunate that the main lineup remains steady. On July 19, Stray Kids, NMIXX's comeback is scheduled between August and September, and a new domestic boy group is set to debut in the second half of the year. In particular, Stray Kids is also preparing for a massive world tour covering 40 cities in the second half of the year.

Researcher Ihwa Jeong analyzed, "The recent increase in operating expenses is due to the advancement of 'JYP360,' but as Stray Kids' activities intensify in the second half, the increase in operating expenses will be limited during the period when album and MD sales rise," adding, "This will lead to a sharp recovery in profitability."