[Infostock Daily= Reporter An Hoe Hyun] Hana Financial Investment maintained its investment opinion 'Buy' on YG Entertainment on the 12th, saying that record sales through BLACKPINK and TREASURE's comeback alone are expected to exceed 10 billion won in the second half and raised its target stock price by 6.66% from 60,000 won to 64,000 won.
Hana Financial Investment forecast YG Entertainment's estimated sales and operating profit to be 66.8 billion won and 8.3 billion won, respectively, in the fourth quarter of this year. With the comeback of BLACKPINK's regular album(1.2 million copies), TREASURE 1 and Song Min-ho's solo(110,000 copies), the album sales alone reached 1.6 million copies, which will be more than the sum of the past two years.
Sales in the third quarter, which was announced the previous day, rose 8% year-on-year to 66.9 billion won and operating profit reached 3.2 billion won, turning to surplus. Its subsidiary YG Plus posted 2.1 billion won in operating profit due to increased service fees and investment revenue related to subsidiaries due to the increase in subscribers to VIBE-oriented.
"We expect a steep improvement in profits due to the expansion of global-oriented management sales at the end of COVID-19," the company explained, adding, "In the case of music sources, Google-oriented quarterly sales are expected to surpass 4 billion won and profits from China-oriented are also expected to be reflected in the 1 billion won range."
"BIGBANG's comeback will be possible within the first half of next year," the company analyzed, adding, "If BIGBANG is able to tour around 1 million people a year, its operating profit in 2022 could be close to 60 billion won."
Reporter An Hoe Hyun ahh@infostock.co.kr
