On January 15, JYP’s stock price closed at 89,000 on Korea’s trading platform, down 7% compared to the previous trading day. The same day also shows declines in other entertainment stocks, such as HYBE (-5.47%), SM (-3.06%), and YG (-0.46%).
Compared to 2023, this is a decrease of 11.17% for JYP, 2.51 for HYBE, 9.04% for SM, and 10.34% for YG Entertainment.
Analysts suspected that JYP’s stock price is influenced by ITZY’s comeback effect. In particular, the agency took the most significant hit among entertainment companies due to one of the company’s representative girl groups, ITZY, falling below expectations.
According to Hanteo Chart, ITZY’s new album sold 318,693 copies in its first week, a significant decrease compared to the girl group’s previous album, which sold over 820,000 copies in the first week.
Meanwhile, YG also experienced a plunge in stock price. According to financial researchers, this is due to the company’s failure to renew individual contracts with BLACKPINK members, the departure of major artists, as well as the debut of rookie group BABYMONSTER performing below expectations.
On the other hand, market analysts suggest that HYBE might fare better than other entertainment companies in the near future. In particular, Samsung Securities projected that Hive’s Q4 operating profit would reach 90.7 billion Korean won (approx 69 million USD), in line with market consensus (89.1 billion Korean won).
At the same time Hana Securities analyzed that the expected operating profits for Q4 for Hive, JYP, SM, and YG are 90.1 billion won (+77%), 45.1 billion won (+75%), 27 billion won (+19%), and 47 billion won (-70%), respectively, with HYBE being the only one aligning with consensus expectations.
Source: Daum
