The stock prices of JYP Entertainment and HYBE are showing strength, with both hitting their 52-week highs.
As of 10:00 am on June 16th, JYP Entertainment is trading at KRW 137,100, up 0.15% from the previous day. JYP Entertainment, which has been on an upward trend since the 7th, reached a new 52-week high of KRW 138,700 on June 14th. Similarly, HYBE also achieved a new 52-week high like JYP. On June 14th, HYBE traded at KRW 307,500, surpassing its previous high. On the following day, HYBE closed at KRW 300,500.
Interest in JYP has been explosive for the past month. On May 15th, JYP held a conference call to announce its first-quarter results. Here, it was revealed that JYP’s consolidated revenue for the first quarter increased by 74.3% year-on-year, reaching KRW 118 billion, while operating profit increased by 119% to KRW 42 billion. The actual results far exceeded expectations, causing JYP’s stock price to skyrocket by over 20%. Since then, it has continued to climb steadily. JYP’s strong performance was driven by domestic and international album and music sales. With TWICE and Stray Kids at the center, JYP achieved a total sales of KRW 51.9 billion, including KRW 29 billion domestically and KRW 22.9 billion overseas.
JYP’s strong performance, which is faithful to the basics of the enterprise, is likely to continue in the second half of the year. First of all, the new album of Stray Kids, which has grown into a group that leads JYP, is setting an all-time record. Their album “5-Star”, released on June 2nd, sold 4.62 million copies in its first week, breaking the record for the highest first-week sales by a South Korean artist. With the album, Stray Kids also reached the top spot on the Billboard 200 chart for the 3rd time in their career, proving their international recognition.
In the second half of the year, tours for Stray Kids and TWICE are scheduled. Additionally, there are high expectations for the A2K project, which applies JYP’s localization strategy called “Globalization by Localization.”
Yuanta Securities researcher Lee Hwan Wook said, “Considering the rapid influx of new fans from around the world, it is also worth expecting positive results due to the increase in MG (guarantee) prices.”
HYBE, like JYP, is experiencing a similar trend. Following the cancellation of SM Entertainment’s acquisition, HYBE experienced rapid growth in early April. This was thanks to BTS Jimin’s title track “Like Crazy” from his solo album “Face” debuting at No.1 on Billboard Hot 100.
HYBE’s stock price, which had been fluctuating around 100,000 KRW, suddenly jumped to the mid-200,000 KRW range. In addition, Goldman Sachs recently issued its first investment opinion on HYBE, initiating coverage of the company at “buy” with a target price of 376,000 KRW.
The second quarter and second-half performance outlook is also positive. SEVENTEEN achieved a sales volume of 4.55 million copies with their mini 10th album “FML” released in April. This record was the highest first-week sales for a Korean artist until Stray Kids set a new record.
Additionally, LE SSERAFIM, with their first full album released in May, reached a sales volume of 1.25 million copies, establishing themselves as a million-seller.
In the second half of the year, fans are eagerly awaiting the comebacks of NewJeans and TXT. Furthermore, Weverse, which has emerged as a dominant fan community platform, is expected to focus on monetization through subscription services.
Yuanta Securities researcher Lee Hwan Wook commented, “The combined album sales for the second quarter are expected to reach an all-time high.”
Source: Daum
