SM, JYP stocks gain on Korea Value-up index inclusion

(SM Entertainment)

SM Entertainment Co. and JYP Entertainment Corp. saw their stocks rise over 4 percent in the Korean stock market on Thursday morning, driven by their inclusion in the Korea Value-Up Index and a positive industry outlook for 2024’s fourth quarter.

SM stocks were trading at 64,500 won ($48.46) as of 9:36 a.m., up 4.54 percent, while JYP stocks were at 49,650 won, up 4.42 percent. Both companies announced their inclusion in the Korea Value-Up Index on Tuesday.

Other major entertainment stocks, including Hybe Co. and YG Entertainment Inc., also reported gains, increasing by 3.76 percent and 2.93 percent respectively.

NH Investment & Securities Co. analyst Lee Hwa-jung called entertainment stocks a “good investment opportunity,” noting that the combined market value of Hybe, SM, JYP and YG has dropped 37 percent in 2024 and that the entertainment industry is expected to return to positive earnings growth starting in the fourth quarter of 2024. Lee maintained a “positive” outlook for the industry and named Hybe as a top pick.

Mirae Asset Securities Co. analyst Kim Gyu-yeon said adding JYP and SM to the Korea Value-Up Index will likely benefit the entertainment sector, which has seen fewer institutional and foreign investors in 2024.

Meanwhile, Korea Zinc Inc. and Young Poong Precision Corp. stocks were also on the rise amid intensified management conflicts within the Young Poong group, with MBK Partners and Young Poong Corp. raising their tender offer prices for Young Poong group companies.

Korea Zinc stocks were trading at 726,000 won as of 9:20 a.m., up 3.12 percent from the previous close, slightly down from a peak of 747,000 won during trading. The adjusted tender offer price from MBK and Young Poong is now 750,000 won.

MBK‘s special purpose vehicle, Korea Corporate Investment Holdings, and Young Poong announced the revised tender offer for Korea Zinc on Thursday, raising it to 750,000 won from 660,000 won.

Following the tender offer announcement earlier in September 2024, Korea Zinc’s stock price surged past the initial offer price, reaching 735,000 won by the week’s end, providing upward momentum.

They also adjusted the tender offer for Young Poong Precision to 25,000 won from 20,000 won. Young Poong Precision stocks were trading at 24,850 won, up 9.23 percent, and near the tender offer price, while Young Poong stocks rose 1.36 percent to 374,000 won.

Semiconductor stocks also surged on Thursday, buoyed by strong performance from Micron Technology Inc.

SK hynix Inc. stocks were trading at 178,000 won as of 9:06 a.m., up 7.68 percent from the previous close of 165,300 won. Samsung Electronics Co. stocks were also up 3.22 percent, trading at 64,200 won, while Hanmi Semiconductor Co. stocks rose 5.16 percent to 112,100 won.

Other semiconductor companies, including Mirae Semiconductors Co., Techwing Inc., and PSK Holdings Inc., recorded gains of 20.51 percent, 8.50 percent, 6.60 percent, and 4.17 percent respectively.

According to Micron’s earnings report released after the New York market closed on Wednesday (local time), the company reported earnings per share (EPS) of $1.18 in the third quarter of 2024, surpassing market expectations. Its fourth-quarter revenue guidance also exceeded forecasts, ranging from $8.5 billion to $8.9 billion, leading to a 14 percent surge in after-hours trading. Other semiconductor stocks, including Nvidia Corp., Advanced Micro Devices Inc., and Intel Corp., also rose by 2 to 3 percent.