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YG officially industrializes fandom, its target stock price rises by 19.7%

It is said that YG PLUS’s distribution of records and music to Hive’s artists led to this achievement.

MAMA awards ceremony without YG artists would be nothing

NH Investment & Securities confirmed that after YG announced its industrialization on fandom following the positive indicators in the past 2nd quarter, its target stock price rose by 19.7% from 71,000 won to 85,000 won. Investment opinion remained ‘purchase.’

In the second quarter, sales increased 56% year-on-year to 83.7 billion won and operating profit increased 277% to 10.5 billion won, far exceeding market expectations of 3.9 billion won,” said Lee Hwa-jung, a researcher at NH Investment & Securities.

“With no significant activity, YG Entertainment‘s digital sales were still strong,” he said. “It’s thanks to the expansion in fandom size of YG artists.”

It is said that YG PLUS’s distribution of records and music to Hive’s artists led to this achievement. Researcher Lee emphasized, “In the third quarter, the sale of Lisa‘s solo album released at headquarters, and the sale of BTS‘ new album at YG Plus is expected to continue the impressive achievement.

The launches of BLACKPINK’s products on Weverse Shop and the subsequent fandom industrialization also drew attention. Blackpink joined Weverse on the 2nd and garnered 1.7 million subscribers for 10 days,” the researcher informed. “They soon started selling MD on the 6th.”

YG officially industrializes fandom, its target stock price rises by 19.7%

Related sales will be maximized in line with Lisa’s solo and group regular comeback in the second half of the year,” he said. “Based on the online concert ticket sales at the beginning of the year, the average monthly payment user (ARPPU) of Weverse Shop will reach 8 billion units per quarter.” He explained, “Considering the characteristics of commission sales, it will make a significant contribution to operating profit.

In addition, while offline concerts are gradually resuming, the growth of the artists’ popularity on the debut of new girl groups is also positive. Researcher Lee added, “The official debut of new girl groups is expected to be in early 2022, and promotional contents will be confirmed in the fourth quarter of 2021.” “It will become a source of growth in the mid-long term.”

Source
ksdaily

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