[Market Focus] JYP Entertainment Surges Over 6% on Record-Breaking Earnings Outlook

JYP Entertainment is surging on May 15, buoyed by expectations of record-breaking results in the second quarter.

As of 9:35 a.m. on this day, JYP Entertainment's share price was trading at 73,700 won per share, up 6.66% from the previous session. Immediately after the market opened, the stock price soared more than 9%, briefly surpassing the 75,000 won level.

This rally is attributed to buying momentum fueled by securities firms' forecasts that JYP Entertainment's performance will significantly improve starting in the second quarter. In the first quarter, JYP Entertainment recorded sales of 140.8 billion won and operating profit of 19.6 billion won, both in line with market expectations.

An Do-yeong, a researcher at Korea Investment & Securities, stated, "Strong results are expected to continue from the second quarter through the end of the year," adding, "In the second quarter, Stray Kids have 23 tour dates scheduled in North and South America. In the second half of the year, Twice's world tour will also resume." He pointed out these events as positive factors. He further commented, "Improvement in quarterly profitability will act as a short-term multiple (valuation-to-profitability) rerating factor, and in the long term, profitability is expected to improve as a result of early-stage growth."

Lee Gihoon, a researcher at Hana Securities, also said, "Record-breaking results are expected from the second quarter," and analyzed, "Assuming major artists make album comebacks in the third quarter, both the second and third quarters are expected to post quarterly operating profits of over 50 billion won, which would set new records." Regarding JYP Entertainment's share price, he evaluated, "It is the only agency that has not seen its stock price rise this year, making it highly attractive in terms of valuation."