Kiwoom Securities on YG’s stock performance, “BLACKPINK’s comeback delay → Lower stock price target”
Due to BLACKPINK’s delayed comeback, YG’s performance will stay slow-moving for longer.
Kiwoom Securities evaluated that YG Entertainment’s stock performance will inevitably be delayed due to BLACKPINK’s comeback postponement. As a result, investors lowered their stock price target for YG from 89,000 won to 78,000 won while maintaining their “buy” investment opinion.
Kiwoom Securities researcher Lee Nam-soo analyzed, “BLACKPINK’s comeback, which was originally expected to happen in the first half of the year, was confirmed to be put off to August. Therefore, the result from world tour performance will be inevitably reflected 1~2 quarters later.”
Kiwoom Securities predicted that YG’s second-quarter sales will fall by 1.4% to 82.5 billion won compared to the previous year and operating profit will see a decrease of 43.2% to 5.1 billion won, which is below market expectations.
Researcher Lee Nam-soo continued, “Only iKON’s album and the existing albums will be reflected in the physical album performance in the second quarter”, adding, “The artist lineup is expected to be much more solid in the second half of this year with BLACKPINK’s highly-anticipated comeback, TREASURE’s return to normal comeback pattern, fandom growth after the artists’ Japan tour, and the debut of YG’s new girl group”, raising high expectations.
He said, “The performance to begin in the 4th quarter is expected to continue until the first half of 2023, and the number of world tour guests YG artists will attract is expected to exceed the record of 470,000 in 2019”, adding, “Considering the increased performance of comebacks and solo activities after their long hiatus as well as the members’ IP level-up as ambassadors for luxury brands, there is a high possibility that BLACKPINK will achieve outstanding performance and rewrite the history of K-pop girl groups.”
The researcher continued, “TREASURE’s comeback in the second half of this year is likely to add more strength”, adding, “Following their first mini-album released in February, the boy group is expected to get the ‘million-seller’ title again and attract more than 150,000 audiences through their arena tour in Japan from the end of November to early January next year.”
Lastly, he said, “With the target of selling more than 2 million copies of their album, BLACKPINK is expected to take the lead until the first half of next year by holding a world tour”, adding, “Although YG’s performance in the first half of this year was sluggish, its performance improvement in the second half might be the most significant among K-pop entertainment agencies.”
Meanwhile, according to the Korea Exchange, YG’s stocks were trading at 51,500 won as of 10:11 a.m, an increase of 1,850 won (3.73%) from the previous trading day.
Source: econovill
