On November 11, Hana Securities revised its target price for YG Entertainment from 49,000 KRW to 53,000 KRW (approx. 35 USD to 38 USD), maintaining a “buy” rating. Explaining this revision, the financial firm stated, “Next year, artists such as BLACKPINK and 2NE1 are coming back in full for the first time in a long while.”
Additionally, researcher Lee Ki-hoon of Hana Securities noted that BABYMONSTER and TREASURE are expected to make comebacks and embark on world tours next year. Furthermore, 2NE1’s newly launched tour has been expanding due to high demand.
Regarding BLACKPINK, he mentioned that as previously reported, they are expected to make a comeback and start a world tour in the latter half of the year. The last tour across four quarters generated approximately 100 billion KRW (around 71.6 million USD) in operating profit.
With BABYMONSTER also contributing this time, YG can anticipate a similar level of earnings year-on-year, even considering contract renewals, the Hana Securities researcher also stated.
Overall, Hana Securities estimates that YG Entertainment’s operating profit will turn positive next year at 45.6 billion KRW (approx. 32 million USD), with further growth expected, reaching 63.4 billion KRW (approx. 45.4 million USD), marking a 39% increase year-on-year.
Source: Daum
