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Jinyoung Park (photo = JYP entertainment) |
[Alpha Biz= Reporter Kim Sangjin] JYP Entertainment is expected to report weak Q2 results, prompting a 16% downward adjustment in its target price by Daol Investment Securities.
According to a report released on the 18th, JYP Entertainment's fair value was revised from 80,000 KRW to 67,000 KRW. This adjustment reflects the anticipated weak performance in Q2, with projected revenues of 873 billion KRW and operating profit of 218 billion KRW. Compared to the same period last year, this represents a decline of 42.5% in revenue and 52.3% in operating profit.
Particularly concerning is the expected 88.6% decrease in album sales, amounting to 85 billion KRW for Q2, influenced by sales from groups like TWICE, NEXZ, Xdinary Heroes, and Stray Kids.
In the performance sector, revenue is forecasted to decrease by 32.0% year-on-year to 98 billion KRW, reflecting activities such as ITZY's 'Born to Be' tour and Stray Kids' fan meetings in Japan during the last Q2.
JYP Entertainment faces high dependency on revenue from re-signing TWICE and Stray Kids next year, despite these challenges.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
