JYP Entertainment stocks traded at 44,400 won as of 1:22 PM on the 21st, according to Korea Exchange data, representing a decline to half the value from the 90,000 won level recorded in November 2023. The stock weakness follows performance slowdown concerns and revived attention to Park Jin-young's past statement on YouTube channel 'ShukaWorld' urging viewers to "definitely buy our company stocks." The decline reflects broader weakness across Korea's entertainment sector, where the combined market capitalization of the four major entertainment companies decreased by 8.038 trillion won from year-end levels.
JYP Stocks Decline to Half of November 2023 Level
JYP stocks traded at 44,400 won as of 1:22 PM on the 21st, down from the 90,000 won level recorded in November 2023. At that time, Park Jin-young appeared on YouTube channel 'ShukaWorld' stating "Now is the timing. If you really have spare money, definitely buy our company stocks" and "You should invest looking at 3 years, 5 years, not 1 year." The stock temporarily rebounded as Stray Kids reached the top of the US Billboard chart, but subsequently declined to the current level as the entertainment sector entered a downturn. Park Jin-young's personal stake value decreased by over 100 billion won due to the decline.
Park Jin-young Purchases 60,200 Additional Shares for 5 Billion Won
Park Jin-young purchased 60,200 additional treasury shares on the market for 5 billion won. The purchase increased his stake from 15.22% to 15.37%. Park Jin-young founded JYP Entertainment and served as an internal registered director from 2011, handling both company management and representative producer duties. He stepped down from the internal director position in March and assumed the role of CCO (Chief Creative Officer), stepping back from the management frontline.
Securities Firms Lower Target Prices While Maintaining Buy Ratings
SK Securities issued a report titled 'Waiting for the Second Half When Stray Kids Returns' on the 21st, lowering the target price from 92,000 won to 75,000 won, an 18.5% reduction. The firm projected Q2 consolidated revenue at 190.8 billion won and operating profit at 38.2 billion won, below market expectations. SK Securities maintained a 'Buy' rating, noting that some revenue not recognized in the first half will be deferred to the second half and Stray Kids' comeback is scheduled.
Yuanta Securities lowered its target price from 84,000 won to 70,000 won on the same day. The firm projected that while external performance will be maintained through TWICE's world tour and MD sales, profitability will be limited as album sales fall below expectations. Yuanta Securities also maintained a 'Buy (BUY)' rating.
The average target price from domestic securities firms over the past 6 months was calculated at 82,125 won, down 15.6% from the previous 6-month average of 97,294 won.
Four Major Korean Entertainment Companies Lose 8.038 Trillion Won in Market Cap
According to Korea Exchange, as of the 16th, the combined market capitalization of Korea's four major entertainment companies—JYP, HYBE, SM, and YG—totaled 12.978 trillion won, a decrease of 8.038 trillion won from year-end. SM showed the largest decline at 48.8%, followed by YG Entertainment (-42.1%), HYBE (-36.0%), and JYP (-35.7%). This contrasts with KOSPI's rise of over 60% during the same period.
Market analysts identify K-pop industry growth slowdown as the primary cause. Album sales are not increasing as before, and domestic stock market funds have concentrated in semiconductors and large-cap stocks, relatively isolating entertainment stocks.
Stray Kids Comeback and TWICE Contract Renewal Identified as Key Factors
Stray Kids' military enlistment issue and TWICE contract renewal uncertainty are constraining investor sentiment for JYP. KB Securities cited TWICE contract renewal status as a major factor in target price reduction, analyzing that even if contract renewal occurs, group activity timing may be delayed if individual activity proportion increases.
Hana Securities maintained a 9 million won target price, noting that Q1 MD (goods) business grew larger than expected and online sales expansion through Blue Garage is lifting profitability. The firm projected that Stray Kids' full-scale activities in the second half could serve as a catalyst for both performance and stock price rebound.
FAQ
What happened to JYP Entertainment stocks on the 21st?
JYP Entertainment stocks traded at 44,400 won as of 1:22 PM on the 21st according to Korea Exchange data, representing half the value from the 90,000 won level recorded in November 2023.
How much did Park Jin-young invest in additional JYP shares?
Park Jin-young purchased 60,200 additional treasury shares on the market for 5 billion won, increasing his stake from 15.22% to 15.37%.
What target price changes did securities firms announce for JYP stocks?
SK Securities lowered the target price from 92,000 won to 75,000 won (18.5% reduction) while Yuanta Securities reduced it from 84,000 won to 70,000 won, both maintaining 'Buy' ratings.
