[Click eStock] "YG Entertainment Expected to Fall Short of First-Half Earnings Estimates... Target Price Lowered"

by Hwang Seoyul

Published 13 Apr.2026 08:09(KST)

On April 13, Hanwha Investment & Securities lowered its target price for YG Entertainment to 70,000 won, while maintaining its "Buy" rating.

[Click eStock] "YG Entertainment Expected to Fall Short of First-Half Earnings Estimates... Target Price Lowered"

Hanwha Investment & Securities estimated YG Entertainment's sales and operating profit for the first quarter at 135.5 billion won and 17.4 billion won, respectively. This operating profit figure falls short of the market consensus of 20.4 billion won.

Suyoung Park, a researcher at Hanwha Investment & Securities, explained, "The release of BLACKPINK's new album, along with a total of six Hong Kong and Tokyo stadium tours and MD (merchandising), is reflected in the numbers. Initially, additional BLACKPINK concerts were expected in the first half of the year, but since no further tour dates were announced after the album release, it has become necessary to revise previously estimated related revenue and profit for the first and second quarters."

Accordingly, the estimate for operating profit in the second quarter has also been revised downward. Although group artists BABYMONSTER and TREASURE are scheduled to release new albums, content production and SG&A expenses are expected to be high, and full-fledged activities will begin in the third quarter, resulting in margin pressure during the second quarter.

In the second half of the year, BABYMONSTER's world tour, TREASURE's tour, and unit activities are anticipated, which should lead to improved performance. BIGBANG's world tour is also expected in the second half, with the potential to attract around 700,000 attendees.

Researcher Park stated, "The key variables for this year will ultimately be BABYMONSTER's growth and BIGBANG's comeback effect. As of the April 10 closing price, YG Entertainment's stock has fallen to a level below a 12-month forward price-to-earnings ratio (PER) of 15 times." She added, "Given the momentum, it is a range worth considering for trading, even up to 20 times."