April 25, 2024

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[THE INVESTOR] JYP Entertainment will post improved earnings as its girl group Twice makes a comeback, said Shinhan Investment on April 10, suggesting a “buy” recommendation and 26,000 won (US$24.34) target price. 

Twice has entered a fully profitable stage and the debut of boy band Stray Kids has strengthened the lineup, explained analyst Han Gyeong-rae.
In the latter half, it will unveil the group Boy Story targeting Chinese fans followed by a female band. Its earnings are set to improve sharply in the next couple of years, said the analyst. 

Preorders for Twice’s new mini album was a record 350,000 and this year the group will reap 46 billion won from it and 21.2 billion won from concerts, up 34.7 percent and 113.5 percent from last year, respectively, estimated Han. 

The music video of Stray Kids which debuted last month topped the number of views for a debut single in 24 hours after release, crossing 4.27 million on YouTube. It has sold more than 30,000 albums in a week, and likely to top 300,000 this year, forecast the analyst. 

JYP Entertainment’s revenue this year will hike 31.1 percent on-year to 134 billion won and operating profit by 42.5 percent to 27. billion won. Since this does not factor in earnings from China, there could be further improvement depending on the popularity of new groups next year, he added.

By Hwang You-mee (glamazon@heraldcorp.com)