[Click eStock] "YG, Momentum Expected with Treasure Debut"

Hana Financial Investment Issues 'Buy' Rating and Sets Target Price at 41,000 Won... Closing Price on 13th at 30,650 Won

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that YG Entertainment is expecting debut momentum from the rookie group 'TREASURE'.

According to Hana Financial Investment on the 14th, YG Entertainment's first-quarter performance showed sales of 52.8 billion KRW and an operating loss of 2.1 billion KRW. Compared to the previous year, sales decreased by 14%, and operating losses continued. Separately, Blackpink and iKON's Japanese royalties resulted in a 1.9 billion KRW profit, but YG Plus posted an operating loss of 2.2 billion KRW due to the impact of COVID-19.

In this situation, the confirmed July debut of rookie TREASURE is expected to act as momentum. Lee Ki-hoon, a researcher at Hana Financial Investment, said, "Since the debut was delayed quite a bit, frequent comebacks unlike typical rookies are expected after debut, and they have already secured a global fan base with 830,000 YouTube subscribers. The recent surge in album sales of major groups, showing the expansion of K-pop's global fandom, is also welcome." He added, "With four Japanese members included, if initial success in Japan is possible, a steep monetization process surpassing TWICE is expected."

Additionally, G-Dragon and Blackpink's Lisa have resumed advertising activities in China. YG Entertainment retains key artists for sales growth toward China in case of easing of the 'Hanhanryeong (Korean Wave ban)'. The researcher explained, "YG Entertainment recorded sales of 69.1 billion KRW in China alone in 2016, but Blackpink debuted in August after the Hanhanryeong started, so their contribution was minimal."

Hana Financial Investment gave a 'Buy' rating for YG Entertainment. The target price was raised from 38,000 KRW to 41,000 KRW. The closing price on the 13th was 30,650 KRW.

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