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Source = YG Entertainment |
[Alpha Biz= Reporter Kim Minyoung] On the 30th, NH Investment & Securities lowered the target price for YG Entertainment from 57,000 won to 52,000 won, a 9% reduction. The target price estimation period is from the second half of this year to the first half of next year. During this period, various artist activities are expected to occur simultaneously, potentially increasing costs (such as labor costs and commissions).
YG Entertainment announced its "2025 YG PLAN," which includes BLACKPINK's comeback and BABYMONSTER's first world tour next year. Additionally, plans for a 2NE1 reunion and world tour were revealed. On August 8th, BLACKPINK will hold an offline fan signing event to celebrate their 8th debut anniversary. NH Investment & Securities noted that there is no need to doubt BLACKPINK's commitment to group activities.
NH Investment & Securities adjusted the annual album sales estimates for long-standing artists such as TREASURE and BLACKPINK. They stated, "The entertainment industry is entering a transition period, with existing artist fandoms beginning to shift to new artists. YG Entertainment is benefiting from this influx through the new group BABYMONSTER."
However, they also noted, "In the case of boy groups, many competitive new groups have emerged, exacerbating the phenomenon of fandom departure. Consequently, the outlook for TREASURE has been adjusted conservatively. YG Entertainment needs a new boy group at this point." TREASURE debuted in 2020.
The second-quarter operating profit is expected to be 3.9 billion won, a decrease of 87% compared to the same period last year, aligning with the consensus (average of securities company estimates). Sales are projected to be 107 billion won, down 32%.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
