[Alpha Biz= Reporter Kim Sangjin] On the 23rd, Samsung Securities projected profit growth for JYP Entertainment (035900) in the upcoming year, maintaining a "Buy" rating and a target price of 71,000 won. The previous day's closing price was 51,400 won.

Samsung Securities estimated that JYP's third-quarter revenue would be 151.6 billion won, an 8.6% year-on-year increase, while operating profit is expected to decline by 28.7% to 31.2 billion won, falling short of consensus estimates.

They noted, "The first half of the year saw overall limited activity from major artists, leading to deteriorating profitability due to mismatches in revenue and expense recognition. However, we anticipate improved profit trends in the second half compared to the first."

Samsung Securities indicated that "performance will improve due to the comebacks and concert successes of major artists like TWICE and Stray Kids, along with the reflection of merchandise sales." They also mentioned that in the fourth quarter, some production costs related to the KBS audition program "The Ddandara" may be recognized.

The firm added, "Stray Kids has started a new world tour, which has become larger in scale, and as issues that impacted profitability this year stabilize, we expect profit growth to resume next year." They noted that boy groups are scheduled to debut in Korea and China by the end of this year or early next year, and their initial performance could impact short-term stock trends.

 

 

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