JYP’s headquarters in eastern Seoul. (image: JYP Entertainment)
SEOUL, Sept. 15 (Korea Bizwire) — JYP Entertainment, the agency-label behind K-pop girl groups like ITZY and TWICE, exceeded the market cap of South Korean media and entertainment giant CJ ENM for the very first time.
Shares of JYP finished at 63,000 won on Sept. 8 with a market cap of 2.23 trillion won (US$1.65 billion), ranking it in the top 10 businesses listed on the KOSDAQ stock market.
CJ ENM’s share price stood at 91,000 won with a market cap of 1.99 trillion won. Its market cap fell behind JYP by 240.7 billion won.
In terms of sales, CJ ENM is far ahead of JYP. Earlier this year, CJ ENM reported 2.14 trillion won in sales, more than 16 times higher than JYP (135.5 billion won).
In terms of profitability, however, CJ ENM lagged behind JYP.
Earlier this year, CJ ENM reported 105.2 billion won in operating profit, for a profit margin of around 5 percent. JYP, on the other hand, reported a profit of 43.4 billion, for an operating profit margin of around 32 percent.
Based on this year’s mid-term report, CJ ENM has more than 130 subsidiaries, while JYP has only nine.
“Unlike its competitor, JYP is almost never involved in businesses that are unrelated to the primary job of the artists,” said Kim Ha-jung, a researcher at Daol Investment & Securities.
“Most of JYP’s sales are directly related to the entertainment business.”
Ashley Song (ashley@koreabizwire.com)
