"Big Bang Leads, Babymonster Pushes"... Why YG Entertainment Is Set to Shine in the Second Half [Click e-Stock]

On May 12, NH Investment & Securities evaluated YG Entertainment as having achieved a balance between the old and the new, and stated that the second half of the year warrants attention. The target price was maintained at 77,000 won, with a 'Buy' investment rating.

Lee Hwajeong, an analyst at NH Investment & Securities, wrote in a report released on this day, "Senior groups such as Big Bang and Blackpink secure upside potential in performance through event-driven group activities, while rookie groups like Babymonster and Treasure ensure downside stability through regular comebacks. This portfolio has been well-structured." She added, "YG Entertainment holds various momentum drivers for the second half, including Babymonster and Big Bang's tours as well as new artist debuts."

Big Bang will kick off their 20th anniversary world tour in August. Their previous tour ran for about a year with 66 performances, 21 of which were arena-level concerts in China (venues with a capacity of 10,000 to 20,000 seats). If the easing of Korea-China relations leads to a resumption of concerts in China, the company is expected to benefit swiftly.

Babymonster will resume their world tour next month. The currently announced schedule includes three shows in Seoul and eleven in Japan, with additional concerts planned in Southeast Asia, Europe, North America, and South America. The previous tour comprised 32 arena-level performances over nine months, and both the number of shows and attendees are expected to increase for this tour. In addition, a five-member boy group and a four-member multinational girl group are preparing to debut in September.

Analyst Lee stated, "YG Entertainment's consolidated sales in the first quarter were 147.1 billion won, and operating profit was 19.4 billion won, in line with consensus. The Blackpink album (2 million copies sold) and six dome tours drove performance, while strong digital music sales were supported by the success of Blackpink's new release and the resurgence of Babymonster's previous tracks."