JYP Entertainment surpasses CJ ENM's market capitalization

연합뉴스 / 2022-09-13 10:39:18

▲This photo, provided by JYP Entertainment shows, the logo of JYP Entertainment. (PHOTO NOT FOR SALE) (Yonhap)

▲This photo, shows, the logo of CJ ENM. (Yonhap)

SEOUL September 13 (Yonhap) -- JYP Entertainment which is considered to be one of the biggest agencies within South Korean entertainment industry has successfully surpassed CJ ENM’s Market Capitalization.

According to the Korea Exchange on Tuesday, the market on September 8, ended with single stock of JYP Entertainment being 63 thousand won and total market capitalization of over 2.2 trillion won. Size of the JYP Entertainment’s market capitalization is similar to the size of top 10 companies of KOSDAQ market, Korean Securities Dealers Automated Quotations. .

Moreover, on the same day a single stock of CJ ENM was priced 91 thousand won with market capitalization of over 1.9 trillion won which is 240 billion won lower than JYP Entertainment. According to the ranking based on KOSDAQ, CJ ENM was ranked 14.

Ever since JYP Entertainment surpassed CJ ENM’s market capitalization on August 23, they have been at the lead.

Ever since CJ ENM merged with CJ E&M and CJ O Shopping on July 18 of 2018, this is JYP Entertainment’s first time ever to overtake CJ ENM’s market capitalization.

On the day of merger, the stock price of CJ ENM sky rocketed up to 259 thousand won and the market capitalization recorded over 5.6 trillion won, successfully placing CJ ENM on the second among the KOSDAQ market. Whereas the current stock price of CJ ENM is 65 percent lower compare to its price on the day of merger.

Contrastingly the stock price of JYP Entertainment started off as being 24 thousand won with 850 billion won in market capitalization on July 18 in 2018 placing themselves as 40thh on the KOSDAQ market, however within four years, JYP Entertainment has managed to switch places with CJ ENM in 4 years.

Based on the sales CJ ENM is much bigger company compared to JYP Entertainment. CJ ENM recorded over 2.1 trillion won where as JYP Entertainment recorded over 1.3 trillion won which is about 16 times the difference.

However, when it comes to profitability CJ ENM was jostled by JYP Entertainment. The operating profit of JYP Entertainment on the first half of 2022 recorded over 43 billion won where as CJ ENM recorded 1.5 trillion won, in percentile wise, CJ ENM had total of 5 percent operating profit whereas JYP Entertainment had 32 percent.

CJ ENM is a gigantic corporation which encompasses businesses within various fields of media, music, film, commerse and more, which overlaps with some parts of JYP Entertainment’s filed of business. However JYP Entertainment puts more emphasis and focus on music compared to other music related businesses such as HYBE, SM, YG and more.

Based on the disclosed information within the report regarding the information about the first half of 2022, there are about 130 different consolidated subsidiaries of CJ ENM, however there are only 9 consolidated subsidiaries of JYP Entertainment.

“Compared to other entertainment industries, JYP Entertainment solely focuses their businesses related to their artists instead of side tracking, therefore most of their project derives from the entertainment itself.” addressed, researcher Kim Ha-jeong from Daol securities.

Continuing on, researcher stated “JYP Entertainment is maintaining their high evaluation repots after being recognized for their solid and yet pure business structure in 2020.” adding “Performance can be reflected directly on the stock price.”

Moreover, researcher Ji In-hye from Shinhan Securities, evaluated that “JYP Entertainment known to solely focus their business in a single field is considered as most profited stock related to entertainment business of the first half of 2022.” adding “Due to the unexpected variables such as macro which damaged investor’s sentiment JYP Entertainment stood firmly.”

“Despite the fact that TWICE’s Nayeon was the only artist to bring in the profit to JYP Entertainment throughout the second quarter of 2022.” adding “JYP Entertainment will continue on with their business through latest album released by TWICE, K-pop girl group NiziU’s first arena tour in Japan, Stray Kids’ global tour and more.” researcher from Shinhan Securities continued on with her assessment.

Although JYP Entertainment has managed to maintain their high performance throughout first and second quarter of 2022 despite of bear market, CJ ENM went on a earning shock spree topped with continuous downfall of their stock price.

CJ ENM continued on with the plunge in stock price through media and comers segment of their business. Especially their recent acquired Hollywood studio’s Endeavor content and the over the top online content streaming service TVING’s deficit is holding back CJ ENM from making a recovery.

“In order for CJ ENM to pull up their stock price once again, they need to recover their profitability within the business related to media. “adding “However due to the economic downturn, it is hard to forecast the growth of TV advertisements, and the continuum of deficit of TVING and Endeavor content slows down the process of recovery.” Researcher of SK Securities Nam Hyo-ji stated.