JYP Entertainment and HYBE stocks are experiencing a strong uptrend, with both companies reaching new 52-week highs. The promising performance of these companies is expected to continue due to the remaining upward momentum.
As of 10 a.m. on the 16th, JYP Entertainment’s stock is trading at KRW 137,100, up 0.15% from the previous day. JYP Entertainment has been on an upward trend since the 7th, reaching a new 52-week high of KRW 138,700 on the 14th. Similarly, HYBE also achieved a new 52-week high, with its stock trading at KRW 307,500 on the 14th. The following day, on the 15th, it closed at KRW 305,000.
Interest in JYP Entertainment has been skyrocketing over the past month. On May 15th, JYP held a conference call to announce its first-quarter results. JYP’s consolidated revenue for the first quarter increased by 74.3% compared to the same period last year, reaching KRW 118 billion, and operating profit increased by 119% to KRW 42 billion. The stock price of JYP surged by over 20% due to the results exceeding expectations. Since then, it has continued its upward trajectory. The strong performance of JYP can be attributed to domestic and international album and music sales, particularly from groups like TWICE and Stray Kids, which generated a total of KRW 51.9 billion in revenue.
JYP’s impressive performance, rooted in its entertainment fundamentals, is likely to continue in the second half of the year. The newly released album ‘★★★★★’ (Five Stars) by Stray Kids, a group leading JYP, has set a record-breaking sales volume of 4.62 million copies, becoming the highest first-week sales record by a South Korean artist. It also achieved its third consecutive No. 1 on the Billboard 200 chart, making an impact overseas as well.
The second half of the year will feature tours by Stray Kids and TWICE. Additionally, JYP’s A2K project, which focuses on localizing global content, is also generating high expectations. With comebacks anticipated for ITZY and solo debut of Twice’s Jihyo. Analyst Lee Hwan-wook from Yuanta Securities stated, “Considering the rapid influx of new fandoms from all around the world, it is worth expecting a positive surprise in terms of performance following the rise in market guarantee (MG).”
HYBE follows a similar trend to JYP. After the cancellation of the SM Entertainment acquisition, HYBE experienced significant growth in early April. This was attributed to BTS member Jimin’s solo album ‘FACE,’ with the title track ‘Like Crazy’ topping the Billboard Hot 100 chart. The stock price, which had fluctuated around KRW 100,000, suddenly soared to around KRW 200,000. The recent investment report by Goldman Sachs further fueled the momentum. Goldman Sachs issued a “buy” recommendation for HYBE, setting a target price of KRW 376,000.
The outlook for the second quarter and the second half of the year is also positive. Seventeen achieved a sales record of 4.55 million copies with their 10th mini-album ‘FML’ released in April. It held the record for the highest first-week sales by a South Korean artist until Stray Kids broke it. Additionally, LE SSERAFIM, with her first full-length album released in May, sold 1.25 million copies and became a million-seller, adding to the momentum.
The second half of the year holds anticipation for comebacks by NewJeans, TOMORROW X TOGETHER, and rumored solo debut of Jungkook from BTS. Furthermore, Weverse, which has emerged as a powerhouse in fan platforms through collaboration with SM Entertainment, is set to launch subscription services and other monetization strategies. Analyst Lee Hwan-wook from Yuanta Securities has a positive outlook, stating, “The combined album sales for the second quarter are expected to reach an all-time high.”
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