JYP Entertainment’s new girl group ITZY will propel the company’s earnings growth this year, said NH Investment and Securities on Feb. 18, maintaining a “buy” recommendation and a 40,000 won (US$35.58) target price.
The music video for the group’s debut song, “Dalla Dalla,” reached 40 million views on YouTube within four days of its release and continues to sell well, said analyst Lee Hwa-jeong, who predicted that it would set off a leap for the company this year.
The firm’s operating profit in the fourth quarter last year was slightly lower than expected at 9.3 billion won, representing an on-year increase of 8 percent, but annual earnings in 2019 will remain on an upturn, she said.
The agency’s main group, Twice, may be slowing down, but JYP will continue to advance thanks to ITZY’s rapidly increasing popularity and Stray Kids’ improved profitability. Its global expansion plans are also materializing, noted the analyst, pointing to the formation of a localized girl group in Japan. Now that ITZY’s successful debut has reconfirmed the company’s strength in female idols, the mid- to long-term outlook is positive, added Lee.
By Hwang You-mee (email@example.com)