[Weekly HOT Stocks] YG Entertainment Hits 52-Week High... Thanks to 'BLACKPINK + Easing of Hanhanryeong' Expectations

From 33,850 KRW on the 26th of last month to 39,450 KRW on the 2nd... a 17% increase in 4 trading days

BLACKPINK of YG Entertainment (Photo by YG Entertainment Official Website)

[Asia Economy Reporter Kum Boryeong] YG Entertainment attracted significant attention from investors over the past week, hitting a 52-week high, driven by the effect of its artist 'BLACKPINK' and growing expectations for the easing of the 'Hanhanryeong (Korean Wave ban)'.

According to the Korea Exchange on the 4th, YG Entertainment's stock price soared to 42,750 KRW on the 30th of last month, marking a 52-week high.

YG Entertainment greatly benefited from BLACKPINK's impact. BLACKPINK's music, which made a comeback on the 26th of last month, reached 100 million views within 32 hours and ranked 2nd, the highest position for K-pop on Spotify. On the 3rd, it surpassed 200 million views on YouTube just seven days after its release.

Lee Ki-hoon, a researcher at Hana Financial Investment, analyzed, "BLACKPINK is expected to have more than two comebacks, including a special comeback in July-August and a full album release in September. All indicators are likely to trend upward, and album sales are expected to reach the highest level in YG Entertainment's history."

Following BLACKPINK's comeback, YG Entertainment's stock price rose. The closing price, which was 33,850 KRW on the 26th of last month, increased to 39,450 KRW on the 2nd. This represents a 16.54% rise over four trading days. Hana Financial Investment raised YG Entertainment's target price by 7% from 41,000 KRW to 44,000 KRW, factoring in BLACKPINK's global achievements and higher assumed album sales per release.

Additionally, expectations for the easing of the Hanhanryeong contributed to the positive sentiment. On the 30th of last month, the Korea Tourism Organization announced that starting July 1, it would jointly promote Korean tourism products through the 'Super BOSS Live Show' with 'Ctrip,' the largest Chinese travel company under Trip.com Group. This caused excitement in sectors such as cosmetics, duty-free, gaming, and entertainment. It was also considered significant as the first tourism exchange initiative since the outbreak of the COVID-19 pandemic.

YG Entertainment's potential sales to China were analyzed to be at least 100 billion KRW. The researcher stated, "In 2016, when sales to China were highest, YG Entertainment's revenue was 62 billion KRW. The Hanhanryeong started in the fourth quarter, and Big Bang alone exceeded 60 billion KRW until the third quarter. Considering BLACKPINK's contribution through tours, appearance fees, advertisements, and events, assuming that sales to China are fully reflected, there is growth potential up to 100 to 120 billion KRW."