[Asia Economy Reporter Oh Ju-yeon] NH Investment & Securities analyzed that YG Entertainment's global fandom is strengthening as 'BLACKPINK' expands its recognition in Western markets, leading to a full-scale growth in sales based on fandom such as albums and content. With its position as a global operator solidified, the company is expected to secure both growth and stability in performance by actively developing fandom-targeted businesses that were relatively weak before. NH Investment & Securities maintained a 'Buy' rating and raised the target price from the previous 55,000 KRW to 62,000 KRW.
According to NH Investment & Securities on the 18th, YG Entertainment's consolidated sales for the 4th quarter are estimated at 90 billion KRW, a 37% increase compared to the same period last year, and operating profit is expected to rise 567% to 6.7 billion KRW.
It is explained that strong sales of albums and digital music are expected due to album releases and activities by major lineups BLACKPINK and TREASURE. However, since BLACKPINK's online concert has been postponed to January, there is a possibility of slightly missing the consensus.
Researcher Lee Hwa-jung stated, "BLACKPINK has confirmed a significant fandom size in Western markets and China, and TREASURE has demonstrated a solid fandom with stable album sales since debut," adding, "Expansion of fandom-based album and MD sales is expected to contribute to performance."
Researcher Lee also analyzed, "In the short term, stable performance growth is prominent due to fandom-based sales (albums, MD), and expectations for digital music sales growth through Big Bang's comeback remain valid. In the mid to long term, there is momentum for performance sales expansion centered on two mega lineups (Big Bang, BLACKPINK) capable of global dome tours including China, as well as performance improvement of the Japan subsidiary based on new TREASURE members."
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