Uncategorized

Why are the three major entertainment agencies, JYP, SM and YG, plunging?

The share price of JYP Ent., which has surpassed $1 billion (KRW1 trillion) since its market capitalization, have plummeted by more than 20%. At the same time, SM and YG’s shares are dropping significantly on October 24th. What are the reasons for this?

Stock prices are falling sharply as Korea’s major entertainment companies are analyzed to have poor performance in the third quarter. According to the stock market, foreign investors sell about 270,000 shares. JYP Ent. joined the 1 trillion club on August 22nd with a total of 1.55.2 trillion won (1.2 billion dollars) and Since then, it has been on the rise, ranking No. 1 in total among all South Korean businesses.

At the KOSDAQ market on the 24th, JYP Ent. is trading at 30,000 won, down 21.85% from the previous trading day at 2:30 p.m.

SM Entertainment also fell 18.18% to 43,300 won. YG Entertainment is trading down 12.41% to 37,400 won.

Han Kyungrae, a researcher at Shinhan Financial Investment, said: “As expectations for the company have been high, the sales of the company are likely to fall in the third quarter.”

The operating profit forecast for the third quarter will be 8.6 billion won, and it will be below 10 billion won, ” said Lee Ki Hoon, the chief economist at the Korea Investment & Securities Research Institute. “We reflected the sales of TWICE’s Japanese showcase merchandising (MD) in January, and also reflected the downward trend of gross margin (GPM) due to increased production costs, ” he added.

Souces: Nate

To Top