April 27, 2024

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[THE INVESTOR] Growth of JYP Entertainment’s revenue from overseas is gaining speed, said KTB Investment and Securities on Nov. 13 raising the target price to 43,000 won (US$37.79) from 38,000 won.

Its operating profit in the third quarter soared 664 percent on-year to 8.5 billion won satisfying market expectations. Increase in contents production cost has been the biggest concern but was offset by rise in revenue. Sales in South America and the US where K-pop is not particularly popular is sharply increasing. The global fan base of its artists is also steadily expanding and demand for overseas tours, especially of GOT7 and DAY6, is likely to grow, said analyst Nam Hyo-ji.

In the fourth quarter, Twice’s arena tour and DAY6’s debut concert in Japan will be reflected in its earnings. Next year the firm will introduce a girl group and a Chinese boy band as well. On the back of stronger name recognition, its artists are making profits faster and new groups will further boost its overseas revenue, added the analyst. 

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