[Click eStock] "JYP Ent., Low-Experience Artists and China Market Reopening Are Future Points"

Stray Kids and TWICE Drive Growth in World Tour Performance
Rookie Boy Group 'Kickflip' Expected to Be New Growth Engine
Anticipation for China Market Reopening Raises Possibility of K-pop Mainland Entry

Leading Investment & Securities on the 26th revised the target price of JYP Entertainment down from 170,000 KRW to 100,000 KRW, reflecting the current stock price level. The investment opinion 'Buy' was maintained. The previous closing price of JYP Entertainment was 67,500 KRW.

According to Leading Investment & Securities, JYP Entertainment recorded consolidated sales of 170.5 billion KRW (YoY +22.1%) and operating profit of 48.4 billion KRW (YoY +10.4%) in the third quarter, surpassing market consensus. Stray Kids, DAY6, TWICE solo albums, concerts and fan meetings in Japan, and the world tours of ITZY and DAY6 contributed to the performance growth. The rookie boy group 'KickFlip,' scheduled to debut on January 1 next year, is also expected to become a new growth driver.

Recently, with the improvement of Korea-China relations, the possibility of K-pop entering mainland China has increased. 'DearU Bubble Platform,' in which JYP holds the second largest shareholder position, plans to start services in China in the first to second quarter of next year in cooperation with Tencent Music. Additionally, with the resumption of visa-free tourism and the activation of cultural exchanges between the two countries, expectations are growing for the reopening of the Chinese market.

Yoo Sung-man, a researcher at Leading Investment & Securities, said, "The expected sales for 2025 are 669.9 billion KRW (YoY +7.9%) and operating profit is 146.1 billion KRW (YoY +12.1%), indicating continuous performance growth." He added, "The successful debut of rookie groups, growth of low-experience artists, and the reopening of the Chinese market will act as key factors for performance and stock price increases."