Hana Securities has forecasted that JYP Entertainment will see performance leverage due to the strong Western fanbase of Stray Kids. The firm maintained a 'buy' rating and raised its target price from 49,000 won to 55,000 won, an increase of 12%.
Lee Gi-hoon, a researcher at Hana Securities, stated on November 12, "We have reaffirmed the performance leverage from Stray Kids' strong Western fanbase," adding that the target price has been raised to 55,000 won based on an upward revision of the estimated earnings per share (EPS) for 2027. He noted that the current stock price is trading at a price-to-earnings ratio (PER) of about 12 times the expected earnings for 2027.
JYP's revenue for the third quarter reached 267.5 billion won, a 15% increase compared to the same period last year, while operating profit rose by 18% to 48 billion won, exceeding market expectations of 42.1 billion won.
The improvement in performance was significantly attributed to Stray Kids' expanded sales in Western markets. In the third quarter, album sales reached approximately 5 million units, boosted by comebacks and debuts from Stray Kids, Young K, NEXZ, and Our Birthday. Notably, the substantial shipments of Stray Kids in Western markets contributed to record-breaking album and digital sales that surpassed market expectations.
In the concert segment, a total of 670,000 attendees were reflected in the results, including about 360,000 from Stray Kids' performances in Korea and Japan. Revenue from performance fees surged by 138% year-on-year to 26.4 billion won, largely due to the estimated 270,000 attendees at the South American festival 'Stray City.' Merchandise sales also increased by 27% to 82.5 billion won, driven by strong concert and online merchandise sales for Stray Kids.
Hana Securities anticipates that the expansion of Stray Kids' world tour will drive next year's performance. The world tour is set to include additional dates in Japan, North America, and Europe, totaling 46 shows with an expected audience of around 2.2 million. Considering the additional performances, operating profit for 2027 is projected to rebound to around 150 billion won.
Lee Gi-hoon, a researcher at Hana Securities, stated on November 12, "We have reaffirmed the performance leverage from Stray Kids' strong Western fanbase," adding that the target price has been raised to 55,000 won based on an upward revision of the estimated earnings per share (EPS) for 2027. He noted that the current stock price is trading at a price-to-earnings ratio (PER) of about 12 times the expected earnings for 2027.
JYP's revenue for the third quarter reached 267.5 billion won, a 15% increase compared to the same period last year, while operating profit rose by 18% to 48 billion won, exceeding market expectations of 42.1 billion won.
The improvement in performance was significantly attributed to Stray Kids' expanded sales in Western markets. In the third quarter, album sales reached approximately 5 million units, boosted by comebacks and debuts from Stray Kids, Young K, NEXZ, and Our Birthday. Notably, the substantial shipments of Stray Kids in Western markets contributed to record-breaking album and digital sales that surpassed market expectations.
In the concert segment, a total of 670,000 attendees were reflected in the results, including about 360,000 from Stray Kids' performances in Korea and Japan. Revenue from performance fees surged by 138% year-on-year to 26.4 billion won, largely due to the estimated 270,000 attendees at the South American festival 'Stray City.' Merchandise sales also increased by 27% to 82.5 billion won, driven by strong concert and online merchandise sales for Stray Kids.
Hana Securities anticipates that the expansion of Stray Kids' world tour will drive next year's performance. The world tour is set to include additional dates in Japan, North America, and Europe, totaling 46 shows with an expected audience of around 2.2 million. Considering the additional performances, operating profit for 2027 is projected to rebound to around 150 billion won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.