JYP <a href="https://comicvibe.com/vamsi-nandipati-swears-by-<a href="https://comicvibe.com/what-investors-got-wrong-about-alliance-entertainment-before-the-drop/” title=”What Investors Got Wrong About Alliance Entertainment Before The Drop”>entertainment-value-of-inka-em-anukoledhu/” title=”Vamsi Nandipati swears by entertainment value of ‘Inka Em Anukoledhu!’”>Entertainment(035900) is surging more than 16% in early trading on the 12th. Investors appear to be piling in after the company posted third-quarter results that topped market expectations.
At 9:30 a.m. that day on the KOSDAQ market, JYP Entertainment was trading at 45,000 won, up 6,300 won (16.28%) from the previous session.
The day before, JYP Entertainment disclosed that on a consolidated basis its third-quarter revenue climbed 15% on-year to 267.5 billion won. Operating profit for the same period rose 17.6% to 48 billion won. Quarterly revenue hit an all-time high, while operating profit beat the market consensus of 41 billion won by about 17%.
Stray Kids’ overseas album and merchandise (MD) sales underpinned the strong results. By segment, album revenue rose 18.2% on-year to 79.2 billion won, and MD revenue jumped 46.7% to 58.6 billion won.
Brokerages also offered upbeat assessments. Eugene Investment & Securities kept its “buy” rating on JYP Entertainment and raised its target price to 55,000 won from 50,000 won.
Lee Hyeon-ji, an analyst at Eugene Investment & Securities, said, “With Stray Kids’ comeback and new releases from various artists, the company booked record album revenue, driving top-line growth,” adding, “In particular, thanks to Stray Kids’ self-branded festival in Latin America and headlining slots at overseas music festivals, appearance revenue also reached a quarterly record.”
She continued, “Starting in the second quarter next year, a large-scale stadium tour of 46 dates—expanded from the previous tour—is planned in Japan, North America, Europe and elsewhere, which should support solid growth,” adding, “A rookie boy group, ‘oftheblue,’ is set to debut early next year, and if the new artists’ performance shows up in the numbers, expectations can translate into growth.”
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