With various comebacks and debuts in the 2nd half, stock prices of HYBE, YG, SM, and JYP all rise

tuleconghoaFebruary 16, 2024Last Updated: February 16, 2024

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YG Entertainment’s stock price is up 5% after news of BLACKPINK’s new release on August 19th. An upward trend is also noticed for other companies.

After media sites reported that YG Entertainment will have famous Kpop group BLACKPINK comeback in the 2nd half of 2022, it is expected that the company will see evident growth during this time period.

According to Market Point on August 9th, YG Entertainment closed its transaction session at 59,500 won, up 4.94% from the previous trading day. The stock price is expected to recover to the 60,000-won level, making this the first time in three months since the company last reached this mark of 60,000 won since April 19th.

This upward trend in the stock price of YG is likely due to news of BLACKPINK’s pre-release on August 19th. In addition, the girl group recently dropped their world tour schedules, which will start with a Seoul concert in October and cover various nations in North America, Europe, Asia, and Oceania.

August 9th also reported rises in stock prices of all major entertainment agencies, with HYBE closing at 3.66% higher, JYP at 3.14% higher, and SM at 1.88% higher.

Following the debut of new rookie groups, album sales have been recording positive results, leading to raised expectations. Regarding this trend, Lee Ki Hoon, a researcher at Hana Securities, analyzed: “Companies release physical albums in various versions and add photocards of members for collection purposes, thus promoting fandom consumption and providing flexibility in pricing policy.”

According to Yuanta Securities, the cumulative shipments of albums from JYP Entertainment’s NMIXX (debuted in February) and HYBE Labels’ LE SSERAFIM (debuted in May) are 480,000 and 420,000, respectively. Meanwhile, SM Entertainment’s aespa set a new record as the 1st Kpop girl group to sell 1 million physical albums in the first week.

“As the initial growth rate of new intellectual property rights (IP) has accelerated, the growth target and expected future profit generation are more likely to be larger than those of existing IPs”, explained Lee Hye In, a researcher at Yuanta Securities.

In addition, 6 groups are scheduled to debut/comeback in the second half of this year by 4 major entertainment companies. In the second half of this year, NewJeans debuted under HYBE, while plans for the company’s trial boy group “&TEAM” are also in formation and LE SSERAFIM is expected to make a comeback. SM Entertainment is aiming to debut their new unit NCT Tokyo, while for YG, there are plans for a rookie group called “Baby Monster” (name not confirmed). Finally, JYP Entertainment will also have TWICE comeback in August. . Researcher Lee Hye In predicted: “Since a number of new albums will be released intensively by four entertainment companies in the second half of this year, it will be an important half-year to compare the growth potential of new groups using various indicators.”