[Infostock Daily= Reporter An Hoe Hyun] NH Investment & Securities expects YG Entertainment's operating profit to increase sharply in the fourth quarter of this year compared to the same period last year. This is due to strong album sales of major idol groups such as BlackPink and Treasure.
The target stock price was raised by 12.7% from the previous 55,000 won to 62,000 won. It is expected that YG Entertainment's fandom-based sales growth will begin in earnest in the future. The investment opinion remained 'Buy'.
"Based on YG Entertainment's consolidated financial statements for the fourth quarter of this year, we estimate sales to be 90 billion won and operating profit to be 6.7 billion won, up 37% and 567%, respectively, from the fourth quarter of last year," the company said.
"We can expect to expand sales of performances by BigBang and BlackPink, two mega-sized teams line-up that allow global dome tours, including China, in the mid- to long-term, and improve Japanese corporate performance based on the rookie Treasure," the company explained, adding, "The rookie Treasure, who debuted in August, has gained prominent recognition in the Japanese market even though they have not made the official debut in Japan yet, and is expected to see earnings growth due to their full-fledged entry into the Japanese market."
Reporter An Hoe Hyun ahh@infostock.co.kr
