Samsung Securities on the 18th said activity across YG Entertainment's artist lineup will resume and expand in earnest in the second half of this year. It maintained a "buy" investment rating and a target price of 71,000 won. The previous trading day's closing price was 48,300 won.
Samsung Securities said momentum continues for Big Bang, which marks its 20th debut anniversary this year, as well as for Treasure and BABYMONSTER. It said a new boy group is also slated to debut in the second half, so stable growth of existing intellectual property (IP) and an expansion of the new lineup are likely to occur simultaneously.
Choi Min-ha, an analyst at Samsung Securities, said, "As the benefits of the artist portfolio enhancements YG Entertainment has prepared so far become visible in earnest, the company will enter a phase of expanding results."
Big Bang announced plans for a world tour to mark the 20th anniversary of its debut. It unveiled a schedule of 31 shows across 18 cities, centered on stadium- and dome-level large venues, from Aug. this year to Feb. next year. Additional regions to be staged will be announced sequentially.
Choi said, "Big Bang proved its enduring global influence and artist competitiveness through its Coachella stage in Apr. this year," adding, "With the first full-group world tour in about nine years, we can expect not only concert revenue but also spillover revenue growth from MD and goods."
Choi also noted, "Because the group has also revealed plans to release a new album, there is a high possibility a new record will be released before or after the tour schedule, which will contribute to growth in album and digital music revenue."
Choi said the growth trajectories of BABYMONSTER and Treasure also warrant attention.
Choi said, "BABYMONSTER plans to begin its second world tour at the end of this month based on an expanded global fandom," adding, "This is expected to drive growth in concert and MD revenue."
Choi added, "Treasure, while continuing fan concerts following the release of its new album, is expected in the second half to broaden its base by expanding its scope through unit and solo activities."