Regarding YG Entertainment, Hyundai Motor Securities, a comprehensive investment company, made its prediction.
On Oct 31st, regarding YG Entertainment, Hyundai Motor Securities predicted, “With WINNER and iKON activities being the main ones until the second quarter, a fall in YG’s performance is inevitable. However, BLACKPINK and TREASURE activities, which began in earnest from the third quarter, improved its performance.” Its suggested investment opinion was maintained and the target stock price was lowered to 70,000 won.
Kim Hyun-yong, a researcher at Hyundai Motor Securities, analyzed, “YG Entertainment‘s operating profit is expected to increase 12.5% year-on-year to 19.5 billion won in the third quarter and 37.4% year-on-year to 18.2 billion won in the fourth quarter.”
Researcher Kim said, “It is believed to have the strongest momentum among major entertainment companies from the fourth quarter to the first half of next year due to the influence of BLACKPINK’s World Tour. The group’s first full album in a year and a half recorded 2.5 million sales last month alone, including 1.54 million copies sold in the first week.”
“In addition, their tour is expected to include 42 concert nights and attract 800,000 audiences, which is more than double the size of their 2019 tour. Both ticket prices and minimum guarantees have risen 50-100% compared to before the pandemic, which indicates a possibility of a surprise in the fourth-quarter earnings,” he said.
“Treasure’s second mini-album this month sold 403,000 copies, which is a bit disappointing compared to their 540,000 direct albums sold in February,” he said. “We believe that YG’s performance is following the top tier growth trajectory, and its new girl group Baby Monster, which is scheduled to debut next year, will quickly join the main girl group tier with BLACKPINK’s halo effect.”