DAISHIN SECURITIES evaluated YG Entertainment on the 7th, noting, "A steep improvement in performance is expected due to BLACKPINK's full comeback." The investment opinion is 'Buy,' and the target price was raised by 8% to 65,000 won. YG Entertainment's previous closing price was 52,500 won.
DAISHIN SECURITIES expressed optimism about the BLACKPINK world tour. Research Institute member Im Soo-jin stated, "This year, along with the expanded activities of Baby Monster and TREASURE, a steep improvement in performance is expected with the anticipated full comeback of BLACKPINK," adding, "In particular, regarding the BLACKPINK world tour, it is assessed that it is highly likely to be announced at a scale exceeding market expectations."
It was anticipated that the insufficient artist lineup, which served as a factor for the stock price discount last year, would improve with the debut of a new boy group scheduled for the end of this year.
BLACKPINK's last world tour consisted of 66 performances, drawing 1.8 million attendees. The average attendance per performance was estimated at about 27,000. Research Institute member Im stated, "Considering that the tour started with about 16,000 arena-level attendees and expanded to dome/stadium level capable of accommodating over 45,000 in the latter half, it is highly likely that the attendance for this tour will exceed 40,000 per performance."
Regarding future world tours, DAISHIN SECURITIES evaluated that total revenue from the performances alone is expected to be 600 billion won, and operating profit is estimated at 90 billion won, based on the average ticket price from last year's concerts. Research Institute member Im stated, "It is expected to grow significantly compared to the last tour, which generated total revenue of 437.6 billion won."
He added, "In particular, as each member's solo activities, such as Rosé's 'APT,' saw significant successes last year, guarantees and royalties are likely to increase, exceeding existing estimates, which provides a positive outlook for a performance surprise."
DAISHIN SECURITIES predicted that YG Entertainment is capable of achieving its highest revenue ever this year. Research Institute member Im noted, "While it is difficult to expect a large improvement in performance just from Baby Monster's first world tour and TREASURE's mini-album comeback along with fan concerts, it is expected that by the second half, new releases that can confirm Baby Monster's growth and an expanded world tour can be anticipated."
He continued, "With the full comeback of BLACKPINK and the growth of low-year intellectual property (IP), it is expected that profitability will improve rapidly from 2.7% OPM in the first half to the 12% range in the second half."