Major entertainment stocks, including HYBE, SM Entertainment, and JYP Entertainment, are showing strong performance.
According to the Korea Exchange, as of 9:05 a.m. on November 12, HYBE was trading at 150,700 won, up 1.96% from the previous trading day. SM Entertainment rose 3.43% to 75,400 won, while JYP Entertainment surged 16.67% to 45,000 won.
At the same time, other companies such as YG Entertainment (up 2.92%), Artist Studio (up 4.95%), iOKAY Entertainment (up 1.32%), Studio Dragon (up 4.04%), CJ ENM (up 3.65%), and Dear U (up 1.14%) are also experiencing upward trends.
The rise in entertainment stocks is attributed to an analysis from the securities industry, which indicates that the sector has reached a historical low due to market exclusion rather than a deterioration of fundamentals. Analysts believe that the recent poor performance of entertainment stocks is largely due to being overlooked in market supply and demand.
In this context, a report titled 'Entertainment: The Game is Changing, Three Key Changes' published by Shin Young Securities has garnered attention. Researcher Kim Ji-hyun noted in the report that 'the competitive landscape of the K-pop industry is changing due to generational shifts, changes in competition among agencies, and global B2C transformations.'
As resources for content production and distribution channels diversify, the premium that large agencies enjoyed in talent discovery is diminishing. It is now believed that the ability to repeatedly produce and monetize intellectual property (IP) will determine corporate value.
Shin Young Securities has set a target price of 300,000 won for HYBE, 61,000 won for JYP Entertainment, and 130,000 won and 35,000 won for SM Entertainment and Dear U, respectively. The target price for YG Entertainment is set at 62,000 won, indicating a potential upside of approximately 37% to 100%.
* This article has been translated by AI.
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