NH Investment “JYP’s target has been lowered… Stray Kids is late in releasing their new album”

NH Investment & Securities lowered JYP Entertainment's target stock price from 120,000 won to 110,000 won on the 15th.

Researcher Lee Hwa-jeong said in a related report on this day, "The timing of the release of Stray Kids' new album, which is the artist with the highest contribution to performance, is somewhat later than previously expected," and "We are conservatively adjusting the outlook for the artist's activities, such as releasing additional new albums or starting a world tour. “We have lowered our performance estimates from before,” he explained.

NH Investment & Securities lowered JYP Entertainment's annual operating profit forecast for this year by 6.9% from 208 billion won to 193.7 billion won.

Researcher Lee said, "In the case of Stray Kids' albums, shipments reached 10 million units last year, so it is expected to show a slight negative growth this year, but performances will show growth by expanding both the size and number of performances per performance," and "Considering the currently released schedule, the performances will generally be “A trend of high and low performance will appear in the second half of the year,” he analyzed.

He also said, "Most of JYP Entertainment's artists have experienced the issue of negative growth in album sales at one time or another," and added, "The possibility of further stock price decline due to negative growth is limited, and from now on, the possibility of a stock price rebound due to expanded performances, box office success, new debuts, etc. is limited." “We need to pay attention,” he said.

However, he added, “In order for the stock price to clearly show an upward trend, a clear turning point is needed to brighten the mood, such as expanding album sales through the debut of a new K-pop singer.”

Reporter Junho Yoon, Ten Asia delo410@tenasia.co.kr