“Thank you Jinyoung hyung”… JYP Entertainment stock price rebounds due to share repurchase [Investment 360]

[Herald Economy = Reporter Seo Kyung-won] Stock prices are showing strength in the early trading on the 19th after news broke that JYP Entertainment CEO Park Jin-young purchased 5 billion won worth of treasury stock.

On this day, in the KOSDAQ market, JYP Ent. is trading at 84,200 won as of 9:22 am, up 1.94% from the previous trading day. Immediately after opening, the stock price rose to 84,900 won, up 2.78% from the previous day.

The day before, CEO Park announced that he spent 5 billion won on the 19th to 20th to purchase a total of 60,200 shares on the market. Accordingly, CEO Park’s shareholding also increased from 15.22% to 15.37%. Since then, shareholder support has emerged, mainly in stock discussion rooms, which appears to have contributed to the rise in the stock price.

Some analysts in the securities market say that market concerns about ITZY’s low album sales, which was behind the recent decline in JYP Ent.’s stock price, were excessive.

Ji In-hae, a researcher at Shinhan Investment & Securities, said in a report that day, “In order for the peak-out of album sales (reaching the peak and then slowing down) to result in the peak-out of the entertainment industry, per-capita fandom consumption should have decreased, but the current situation is not like that.” said.

He explained, “The decrease in albums does not mean a decrease in overall sales, but the consumption power that was previously limited to albums during the COVID-19 incident is now being distributed to various items such as concerts and goods.”

Lee Ki-hoon, a researcher at Hana Securities, estimated in a recent report that JYP Ent.’s expected operating profit in the fourth quarter will be 45.1 billion won, SM 27 billion won, YG Entertainment 4.7 billion won, and Hive 90.1 billion won. He explained, “The album was sluggish, mostly due to the decline in Chinese tools,” and said, “Nevertheless, Hive offset this through an increase in global fandom.”

In addition, the sluggish album sales of the girl group ‘Itzy’, whose comeback was recently anticipated, also seem to have had an impact on the decline in entertainment stocks.

Kim Hye-young, a researcher at Daol Investment & Securities, said that the initial sales of ITZY’s 2nd full-length album recorded 230,000 copies on the 4th day. He pointed out that the slowdown in fandom growth is believed to be the cause. At the same time, she said, “The first quarter of this year is a time when momentum is more important than an album.”

gil@heraldcorp.com