[Click eStock] "YG Entertainment, 2Q Expectations Rise with BLACKPINK Full Group Comeback"

▲BLACKPINK [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Kiwoom Securities maintained its 'Buy' rating and target price of 89,000 KRW for YG Entertainment on the 12th.

YG Entertainment reported Q1 sales of 75.5 billion KRW and operating profit of 6.1 billion KRW, down 22.4% and 21.4% respectively compared to the same period last year. This fell short of market expectations. The main reasons for the decline were sluggish performance in the appearance and music service sectors, as well as a decrease due to Blackpink's digital content and solo activity hiatus.

However, there is high anticipation as the entire artist lineup is expected to resume activities throughout the first and second half of this year. Treasure sold 800,000 albums in Q1 and is expected to make three comebacks this year. Winner and iKON are set to resume activities in the first half, and Blackpink's comeback in the second half raises expectations for full artist lineup activities. In Q2, concerts by Winner, iKON, and Treasure will be held both online and offline. Concert comebacks and merchandise sales are expected.

Especially, Blackpink, considered the biggest comeback act this year, is expected to directly contribute to concert and merchandise performance with their first full-group comeback in two years. Blackpink's 2022 concerts are projected to attract over 300,000 attendees across more than 20 shows based on their second-half comeback schedule.

Namsoo Lee, a researcher at Kiwoom Securities, analyzed, "A clear pattern of a strong second half following a weaker first half is expected due to Blackpink's comeback in the latter half of the year." He added, "Reflecting the increase in concert ticket prices compared to two years ago and the strengthening of Blackpink's global fandom, a more pronounced performance improvement in the second half is anticipated."