The target stock price is 78,000 won and the investment opinion remained as “purchase.”
KB Securities announced on April 28th that the current stock price adjustment at YG Entertainment is considered a buying opportunity for investors as BIGBANG, BLACKPINK, iKON, and WINNER‘s comeback and offline concerts are scheduled for later this year.
Researcher Ryu Eun-ae predicted that YG Entertainment‘s sales in the first quarter fell 13.8% to 83.6 billion won compared to last year while operating profit fell 14.1% to 8.2 billion won. Researcher Ryu said, “This agency will meet the consensus of 8.9 billion won based on operating profit,” adding, “TREASURE, which is in its third year since debut, released its first mini-album in February and sold 770,000 copies, proving its possibility of becoming a million-seller in the future.”
Researcher Ryu continued, “BIGBANG released a digital single in the second quarter, but they have had no offline concerts or broadcasting activities so far,” adding, “BIGBANG’s ‘Still Life’ has been at the top of major domestic music charts for 22 consecutive days since its release, and expectations for the group’s follow-up activities are spreading.” Researcher Ryu added, “In the future, YG members except for T.O.P are expected to have solo or unit activities.”
“All are looking forward to BLACKPINK’s comeback in the third quarter. BLACKPINK has conducted a total of 34 concerts as part of their world tours between 2019 and 2020, and their world tour in the second half of 2022 will have 50 shows by the first half of 2023 as a tour that begins in full-blown after the Pandemic. As BLACKPINK’s intellectual property (IP) value has increased, the number of their overseas tour guarantees will also rise significantly,” she claimed. “The agency also plans to debut a new girl group within this year.”
Researcher Ryu said, “Currently, YG’s stock prices are trading 20.3% lower than the previous high due to profit-taking following BIGBANG’s comeback and 24.8 times the 12-month expected stock price return (P/E) based on consensus,” stressing, “Its current stock price adjustment is a buying opportunity for investors.”
