[Click eStock] "YG PLUS, Expected Benefits from China's Entertainment Market Opening"

[Asia Economy Reporter Yoo Hyun-seok] Research Alom analyzed on the 24th that YG PLUS is expected to benefit from the opening of the Chinese entertainment market. The investment opinion was maintained as positive, and the target stock price was raised to 2,700 won.

Researcher Lee Jae-young of Research Alom said, "The Korea-China-Japan joint concert scheduled for the 15th of next month is the first official event hosted by the Chinese government, marking a significant turning point as the Chinese entertainment market, which had been firmly closed since the Hallyu ban, is reopening." He added, "Our government has done its best to maintain relations with China despite difficulties caused by COVID-19, and if this untact concert is successfully held, K-Entertainment is expected to be the foremost beneficiary of its fruits." He further noted, "In particular, ‘Big Bang’ and ‘Blackpink’ under YG Entertainment have tremendous influence in the Chinese market, warranting attention."

Especially, the researcher expected that YG PLUS, which is in charge of distributing albums and digital music of YG Entertainment artists, will benefit from streaming and digital album sales following the concert.

Along with this, the Chinese advertising market, which can be fully opened after the concert, is also expected to be a positive factor for business performance. He said, "Most CFs and advertisements featuring artists under YG Entertainment are conducted through YG PLUS." He explained, "Recently, YG PLUS was responsible for the Chinese beverage CF filmed by ‘GD’ as well as past brand advertisements featuring Blackpink members such as Galaxy, Chanel, and Hera. With the comeback of major artists like Blackpink and Big Bang this year, along with the debut of the 12-member boy group Treasure and girl group Baby Monster, advertising sales exceeding those of 2018 are expected."

He added, "The subsidiaries ‘Greenworks’ and ‘YG QED,’ which are expected to benefit from the decrease in overseas golf travelers this year, are also investment points to watch." He explained, "The annual average number of overseas golf travelers from Korea is estimated at about 2 million, and considering that the per-person rounding cost is about 360,000 won, the domestic golf market is expected to expand by more than 700 billion won compared to the average year."

Researcher Lee emphasized, "Since mid-March, the number of reservations at most golf courses, excluding Daegu, Gyeongbuk, and Honam regions, has increased by more than 10-15% compared to the previous year." He stressed, "Accordingly, a favorable business environment continues for ‘Greenworks,’ which holds over 80% market share in the domestic golf field reservation service market, and ‘YG QED,’ which operates indoor and screen golf practice ranges."

This content was produced with the assistance of AI translation services.