"BIGBANG 20th Anniversary Expected, but... YG Entertainment Target Price Lowered [Click e-Stock]"

On April 16, iM Securities lowered its target price for YG Entertainment from 100,000 won to 85,000 won, reflecting a relative performance gap. The investment opinion was maintained at 'Buy'.

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Ji-won Hwang, an analyst at iM Securities, stated in a report released that day, "Due to the absence of additional activities from BLACKPINK and the adjustment of the BABYMONSTER world tour resumption schedule, second quarter results have been revised downward, and performance momentum is expected to be concentrated in the second half of the year."

For the first quarter of this year, revenue is expected to reach 143 billion won, up 43% from the previous year, and operating profit is forecast to increase by 106%, in line with consensus estimates. Album sales reflect the release of a new BLACKPINK album, with sales of two million copies. As for concerts, there were six performances by BLACKPINK, six by TREASURE, and two by BABYMONSTER, attracting a total audience of about 500,000 people.

A BIGBANG 20th-anniversary tour is anticipated for the second half of the year. Given that the 10th-anniversary tour attracted over one million people in Korea, Japan, and Hong Kong alone, the tour is expected to significantly contribute to profits. Following BIGBANG's Coachella performance, specific tour dates are expected to be announced. There is also a possibility that performance estimates could be revised upward depending on the actual scale of the concerts and whether a new album or single is released.

Analyst Hwang added, "As reliance on established acts such as BLACKPINK and BIGBANG remains high, expanding the rookie lineup is extremely important." He continued, "A new boy group is scheduled to debut this fall, and a girl group is planned for next year. However, it will take some time before these new acts make a meaningful contribution to performance."

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