Hana Financial Investment: “YG Ent’s 4th quarter earning shock due to BLACKPINK’s delayed comeback and one-time expenses”

Hana Financial Investment analyzed YG Entertainment’s last year 4th quarter earning. 

On Jan 11th, Hana Financial Investment analyzed that YG Entertainment (49,900 won ▼ 1,100-2.16%)’s 4th-quarter earnings will fall short of the consensus (stock trading firm’s average forecast) due to poor record sales and delayed comeback activities of girl group BLACKPINK. Its target stock price was lowered to 81,000 won, 14% lower than before, and the investment opinions remained as “buying.”

Researcher Lee Ki-hoon proposed YG Entertainment‘s sales forecast for the fourth quarter of last year to 72.4 billion won, down 13% from a year earlier, with an operating profit forecast falling 37% to 3.4 billion won. Initially, its operating profit consensus was 8.3 billion won.

Researcher Lee said, “Song Mino’s comeback has sold 90,000 album copies, but there was no comeback from any other YG artists except from him, which means its quarterly album sales were only 200,000 albums,” and explained, “The one-time cost related to the drama ‘Joseon Exorcist”’ was also reflected.”

Researcher Lee also added, “We expected a high synergy effect after BLACKPINK entered Weverse, but their comeback is being delayed, so it is highly likely that we will only be able to check their synergy after their comeback expected in the first half of this year.”