Stray Kids Plus oftheblue? JYP Entertainment Shares Surge Over 20%

JYP Entertainment shares surged more than 20% during trading on Nov. 12, driven by stronger-than-expected third-quarter earnings and anticipation of a major Stray Kids world tour in 2027.

According to the Korea Exchange, JYP Entertainment (035900) was trading at 47,150 won as of 11:10 a.m. KST, up 8,450 won, or 21.83%, from the previous session. The stock had closed at 38,700 won a day earlier and reached an intraday high of 47,600 won.

The rally followed the company's third-quarter earnings report, released on Nov. 11. JYP Entertainment posted consolidated revenue of approximately $200.4 million (267.5 billion won), up 15% from a year earlier. Operating profit rose 17.6% to about $36 million (48 billion won), beating a market estimate of approximately $30.1 million (40.2 billion won) by around 19%.

Stray Kids played a major role in the earnings growth. Stronger album sales in the U.S. and Europe helped boost revenue, while income from the group's own festival in South America and headlining appearances at international music festivals also contributed. Concert merchandise sales provided another boost.

Brokerages have also raised their expectations for JYP Entertainment. On Nov. 12, Eugene Investment & Securities increased its target price for the company by 10%, from 50,000 won to 55,000 won, while maintaining its "buy" rating.

Eugene analyst Lee Hyun-ji highlighted Stray Kids' upcoming stadium tour, scheduled to begin in the second quarter of 2027. The tour is expected to include 46 shows across Japan, North America and Europe, making it larger than the group's previous tour. Lee projected that the expanded schedule would drive growth in both concert revenue and profitability.

However, the expected military enlistments of some Stray Kids members remain a longer-term concern. Lee noted that full-group activities could face disruptions in 2028. She also warned of potential revenue losses following JYP Entertainment's failure to renew contracts with some TWICE members.

Meanwhile, JYP Entertainment is preparing to launch its new boy group, oftheblue. According to a brokerage report, the group is scheduled to make its official debut on Jan. 11, 2027.

With potential activity gaps ahead for some of its established acts, the new group's ability to build a fan base could become an important factor in JYP Entertainment's future earnings.