JYP Entertainment "Weak Q2 results expected" (Neutral) Han

研报英文原文证据摘录

JYP Entertainment "Weak Q2 results expected" (Neutral) Han

0 3 3,878

Looking forward: Earnings Visibility Hinges on TWICE and New Artists 12/27E 3,564 3,541 -1 4,404

Beyond near-term earnings, we believe investor focus will remain on TWICE's contract 12/28E 3,654 3,550 -3 4,628

renewal and the pace of monetization from JYP's younger artists. While we expect

Jennifer HanTWICE to continue activities under JYP in some form, uncertainty around the timing and

Analyst

terms of a renewal is likely to remain an overhang until greater clarity emerges. We also jennifer.han@ubs.com

expect younger artists to gradually expand their fan base and album sales, but not +82-2-3702 8802

sufficiently to materially reduce JYP's reliance on TWICE and Stray Kids over the next few

years. As a result, we expect earnings visibility to remain relatively limited despite near-

term growth from Stray Kids' world tour.

Valuation Supported, But Visibility Remains Limited

We make modest changes to our 2026/27E EPS forecasts by +3%/-1% to reflect recent

album sales and concert schedule. However, we lower our PT to Won50,000 as we

reduce our target PE to 15x (from 24x), representing the low end of JYP's post-2024

trading range of 15-19x. While the stock currently trades below this range, we believe

Stray Kids' upcoming world tour and potential additions to the concert schedule should

support earnings momentum over the next 12 months. TWICE and Stray Kids accounts

for ~60-70% of JYP's revenue, highlighting the company's continued dependence on its

two key franchises. Against this backdrop, uncertainty on TWICE's contract renewal, the

still-limited earnings contribution from younger artists, and the potential military

enlistment of Stray Kids members from late 2027 are likely to cap valuation expansion.