Hive’s stock surged by 5.5% early in the session and rose by 9% in the after-market on the 12th. The stock frequently fluctuates during disputes over exclusive contracts, such as the interview with Min Hee-jin or declarations of contract terminations. The rise in Hive’s stock price is attributed to all members of NewJeans returning, as per the Korean stock exchange on the 13th, Hive’s stock was up 5.33% at 306,500 KRW as of 11 AM. The news of NewJeans members’ return, announced the previous evening, boosted the stock price, with Hive’s stock having jumped 8.93% in the after-market on the 12th. Since last year, Hive’s stock has been impacted by the disputes with NewJeans. After former ADOR CEO Min Hee-jin’s interview criticizing Hive’s management on April 25 last year, Hive’s stock fell by 4.95%. ADOR, a subsidiary of Hive, holds an exclusive contract with NewJeans. Seven months later, when NewJeans declared contract termination on November 24, Hive’s stock fell 13.41% over 10 trading days, declining on 8 of those days.
The fluctuation in Hive’s stock during the disputes with NewJeans is because NewJeans is a crucial IP generating significant revenue. Min-Young Kim, an analyst at Meritz Securities, stated, “NewJeans surpassed the break-even point within a year, generating an operating profit of 33.5 billion KRW for ADOR in 2023.” She added that “if they make a comeback next year, they could contribute approximately 6 to 7 billion KRW to operating profit in 2026 and at least 20 to 30 billion KRW annually from 2027.” Hive’s stock rose whenever the court sided with ADOR. When the court ruled on May 30 that NewJeans members must compensate ADOR 1 billion KRW each for independent activities, Hive’s stock rose by 16.17% over the next five trading days. Following ADOR’s first-instance victory in the lawsuit confirming the validity of the exclusive contract on the 30th of last month, Hive’s stock rose by 5.02% and another 5.08% the next day.
Meanwhile, JYP, the last of the four major entertainment companies to announce its earnings, fell due to an earnings shock. After announcing disappointing earnings after regular trading hours on the 12th, JYP’s stock fell by 1.95% by 11 AM on the 13th. JYP achieved a record-high third-quarter revenue of 232.6 billion KRW but posted an operating profit of 40.8 billion KRW, below the consensus of 51.6 billion KRW. Hyun-Ji Lee, an analyst at Eugene Investment & Securities, noted, “Operating profit was temporarily weak due to increased production costs for new groups such as ‘Boys Next Door’ and management revenue expansion,” adding that “the fundamentals remain solid based on concert growth centered on established IP like Stray Kids and stable contract renewals.”