[THE INVESTOR] JYP Entertainment’s younger groups will propel its earnings growth, said Yuanta Securities Korea on Nov. 27 suggesting a “buy” recommendation and 41,000 won (US$36.30) target price.
Twice will begin touring Japan next year and boost earnings, while GOT7 also is increasingly active in the US. Although the rookies who debuted this year will not be able to contribute significantly, depending on the speed of fan base growth, they could help the firm gain momentum. As it has a growing lineup of fresh musicians, its gross profit margin will improve. The figures have improved to 45.3 percent in the third quarter this year, from last year’s 38.4 percent. Many members of 2PM, a 10-year-old group, have stopped performing to serve military duties while GOT7 and Twice have become the major source of revenue, said analyst Park Seong-ho.
Stray Kids has accumulated sales of 300,000 albums seven months since its debut, and a girl group is scheduled to debut next year as well, he added.
By Hwang You-mee (firstname.lastname@example.org)