[Click eStock] YG Entertainment's High Hopes for 'Baby Monster'... Target Price Up 8%

Samsung Securities Report

[Asia Economy Reporter Minji Lee] Samsung Securities maintained a buy rating on YG Entertainment on the 23rd and raised the target price by 8% from the previous level to 66,000 KRW. This is based on the analysis that the company's presence in the market will expand due to major artists' world tours and the debut of a new rookie group.

In the fourth quarter, YG Entertainment recorded sales of 125 billion KRW and an operating profit of 15.7 billion KRW, marking increases of 40.5% and 18.4% respectively compared to the same period last year. However, the operating profit fell short of the market expectation of 22 billion KRW. This was influenced by the deferred recognition of some sponsorship fees and concert revenue.

In the fourth quarter, BLACKPINK and TREASURE's world tours were in full swing, and iKON held concerts in Japan. During the quarter, BLACKPINK held 2 concerts in Korea, 12 in the United States, 2 in Canada, and 10 in Europe, while TREASURE performed twice in Seoul and 21 times on their Japan arena tour. Album sales increased with the release of TREASURE's second mini-album in October, and the success of BLACKPINK's second full-length album, released at the end of the third quarter, continued into the fourth quarter.

A notable aspect is the debut of a rookie girl group for the first time in seven years. The rookie girl group Baby Monster consists of seven members: three Koreans, two Thais, and two Japanese. Although the exact debut date has not been announced, their debut within the first half of the year is certain. Their official YouTube channel has already surpassed one million subscribers, marking the beginning of a global fandom formation.

However, uncertainty is acting as a discount factor on the stock price as BLACKPINK's contract expiration approaches. Nevertheless, attention should be paid to the expanding market presence due to the intensified activities of major artists. Minha Choi, a researcher at Samsung Securities, said, “Since the second half of last year, offline performances by affiliated artists have fully resumed, increasing profit scale, and the addition of rookie groups will strengthen mid- to long-term growth potential. In the first half of this year, attention should be paid to BLACKPINK's world tour, Jisoo's solo album, TREASURE's Asia tour, and Baby Monster's debut.”

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