Comeback-online concert in the second half of the year
₩70,000-offering securities company
As the girl group BLACKPINK is scheduled for a comeback and online concert in the second half of this year, YG Entertainment’s stock price rose 3.5% from the previous trading day to ₩56,200 on the 21st. This month, it is a 9.77% increase. Besides improving the fundamentals of the entertainment industry as a whole, YG Entertainment is expected to see a particularly steep earnings rise in the second half of the year due to a large number of artist activities.
In the second quarter of last year, YG Entertainment was the only company among the four major entertainment companies to have close to a void in the activities of its artists, but according to the consensus of the securities companies, it is expected to record an operating profit of ₩3.8 billion, an increase of 155.53% compared to the same period of the previous year.
Analysts suggest that the basic physical strength of the entertainment industry, which has been strengthened due to domestic and overseas music and advertisement sales, expansion of subsidiaries, etc. has been confirmed. In particular, for YG Entertainment, earnings momentum from artist activities will be concentrated in the second half of the year. Accordingly, operating profit in the third quarter is expected to surge 392.65% and 236.55% year-on-year to ₩8.4 billion and ₩14.8 billion, respectively.
As a result, securities firms are also raising their target prices for YG Entertainment. On the same day, Hanwha Investment & Securities and KB Securities raised the target prices of YG Entertainment to ₩65,000 and ₩70,000, respectively. Earlier, on the 14th, KTB Investment & Securities and Korea Investment & Securities raised their target prices to ₩67,000 and ₩71,000, respectively. Seven of the nine securities firms that published reports this month raised their target prices.