YG Entertainment's stock price renewed its highest level in the past year early on the 28th. With YG Entertainment announcing better-than-expected results for the fourth quarter of last year, the influx of buying is interpreted as being driven by positive projections from the securities industry.
As of 9:23 a.m. on this day, YG Entertainment was trading at 63,500 won, up 1,700 won (2.75%) from the previous trading day in the KOSDAQ market. At one point during the session, it recorded 64,700 won, setting a new high for the year.
As the company's strong performance exceeded market expectations and the securities industry issued consecutive positive forecasts, it seems that investor sentiment has surged.
YG Entertainment's consolidated revenue for the fourth quarter of last year (October to December) was provisionally reported at 104.1 billion won, with an operating profit of 1.3 billion won. The market had anticipated an operating loss of 5.4 billion won.
Kim Min-young, a researcher at MERITZ Securities, noted, "The monetization period for low-tier and new intellectual properties is beginning earlier than expected," adding, "As the stature of Treasure and Baby Monster changes, the growth in revenue from albums, digital music, and concerts, along with merchandise sales, royalties, and grants, is likely to have driven the earnings results."
IBK Securities said, "In the first half of this year, the world tours of Treasure, Baby Monster, and 2NE1 will proceed simultaneously, expecting a total audience of 400,000," and stated, "With Blackpink's world tour starting in June, the degree of improvement in earnings in the second half is expected to increase further."
MERITZ Securities adjusted its target stock price for YG Entertainment upward by 39.6%, from 53,000 won to 74,000 won. Samsung Securities also raised its target price from 61,000 won to 75,000 won.