“BLACKPINK and 2NE1 Announce Comeback”, Artist Activities Enhance YG Entertainment’s Future Prospects

Hana Securities Adjusts YG Entertainment’s Target Price Amid Anticipated Artist Comebacks

On November 11th, Hana Securities updated its target price for YG Entertainment from 49,000 KRW to 53,000 KRW (approximately $35 to $38 USD). The firm upheld a “buy” rating, citing upcoming artist activities as a significant factor in this adjustment.

Exciting Returns from Major Artists

The financial institution elaborated on their rationale, noting the highly anticipated returns of renowned groups such as BLACKPINK and 2NE1. Both groups are poised to re-enter the music scene after a considerable hiatus, indicating a strong year ahead for the entertainment company.

Emerging Talent on the Rise

Researcher Lee Ki-hoon from Hana Securities highlighted that not only are BLACKPINK and 2NE1 making comebacks, but the rookie group BABYMONSTER and the boy band TREASURE are also expected to launch new projects and global tours next year.

Financial Forecasts and Profit Expectations

Researcher Lee also indicated that BLACKPINK’s anticipated world tour in the latter part of the year could replicate the spectacular success of their last tour, which yielded around 100 billion KRW (approximately $71.6 million) in operating profits over four quarters.

With the addition of BABYMONSTER’s contributions, YG Entertainment is optimistic about maintaining comparable earnings year-on-year, even amid the ongoing contract renewals for its artists.

Positive Outlook for YG Entertainment’s Financial Future

Overall, Hana Securities forecasts a transformation in YG Entertainment’s operational profitability, projecting a positive operating profit of 45.6 billion KRW (roughly $32 million) next year. Additionally, an expansion is anticipated, potentially reaching 63.4 billion KRW (about $45.4 million), reflecting a robust 39% year-on-year increase.

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