JYP Entertainment tops list of most downgraded stocks as share price falls from 140,000 won to 30,000 won range

Park Jin-young [Photo, Waterbomb YouTube channel]

JYP Entertainment has received more target price downgrades from brokerages than any other stock in recent months, according to financial data provider FnGuide. The K-pop agency topped the list with 28 downgrade research notes on an individual stock basis.

FnGuide data released Tuesday showed that from July 1 through Sunday, JYP Entertainment led all stocks with 28 downgrade research notes. Hyundai Motor followed with 22, while Classys and Hybe each received 19, GS Engineering & Construction 18 and Netmarble 17. Total downgrades across all stocks reached 571, outpacing 304 upgrade notes.

Yuanta Securities Korea said JYP Entertainment's second-quarter earnings fell short of market consensus, cutting its target price to 55,000 won from 60,000 won.

JYP Entertainment posted consolidated second-quarter sales of 183.1 billion won, down 15.1 percent from the same period last year. Operating profit fell 41.4 percent to 31 billion won.

"Given the disappointing growth of newer IP acts, uncertainty surrounding Twice's activities, and the looming hiatus from Stray Kids' mandatory military service starting in the second half of next year, the outlook for a share price recovery is not promising," said Lee Hwan-wook, an analyst at Yuanta Securities Korea.

SK Securities also lowered its target price for JYP Entertainment to 66,000 won from 75,000 won. "Stray Kids' military enlistment and uncertainty over Twice's contract renewal are headwinds for medium- to long-term earnings," analyst Park Jun-hyung said. "The possibility that Twice's activity schedule and comeback cycle will become less frequent must also be factored in."

Park Jin-young [Photo, Ministry of Culture, Sports and Tourism]

Meritz Securities cut its target to 65,000 won from 79,000 won, and NH Investment lowered its target to 69,000 won from 83,000 won. Hana Securities set the lowest target among brokerages at 58,000 won.

Three years ago, in 2023, Park Jin-young, the largest shareholder of JYP Entertainment, appeared on a YouTube channel and said, "If I had spare money, I would unconditionally buy shares in our company — now is the time."

He also told investors to "buy with a three- or five-year horizon, not a one-year horizon." The remarks were widely interpreted as urging shareholders to view the share price decline as a long-term buying opportunity.

Three years on, however, the share price has fallen far more sharply. JYP Entertainment, which traded in the 90,000 won range at the time, has tumbled to the 30,000 won range — near its all-time low. Park currently holds a 15.37 percent stake in the company, and his shareholding is estimated to have lost more than 100 billion won ($72 million) in value.

JYP Entertainment shares once topped 140,000 won. On Tuesday, the stock closed at 39,350 won.

park@heraldcorp.com