Korean securities firms say ‘YG’s 4Q earnings are low.. expectations for this year’

연합뉴스 / 2022-01-20 13:13:10
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▲ This photo shows YG Entertainment. (Yonhap)


SEOUL, Jan. 20 (Yonhap) -- Securities firms lowered their stock price target one after another on Thursday, predicting that YG's fourth-quarter earnings would fall short of expectations.

Samsung Securities is 91,000 won → 78,000 won, eBEST Investment Securities is 95,000 won → 77,000 won, SK Securities is 86,000 won → 70,000 won.

Nam Hyo-ji, a researcher at SK Securities, said, "Operating profit in the fourth quarter of last year is expected to fall below 7.2 billion won," adding, "As the break of major artists' activities prolonged, this year's operating profit estimate has also been lowered by 14.9%."

Nam explained, "In the fourth quarter, two offline concerts and fan meetings were held for the first time since COVID-19, their contributions to profit are low due to the limited number of seats,” adding, "Album Sales fell 82.2% year-on-year to 297,000 units and nothing was new except for Song Min-ho’s recent 90,000 solo albums."

Ahn Jin-ah, a researcher at eBEST Investment Securities, said, "There are expectations for the comeback of main artists but there isn’t enough room to make new debuts and expand the portfolio of artists," adding, "The comeback of main artists and resumption of concerts will not be possible until the second quarter of this year."

However, all three securities firms expected YG artists to engage in more activities this year and their investment opinions remained "buy."

"TREASURE's first mini-album is scheduled to be released in February, and BLACKPINK is likely to resume its activities with the release of the album in the middle of this year and hold a world tour,” said Choi Min-ha, a stock researcher at Samsung Securities.

"Artist activities were relatively passive in the fourth quarter of last year," adding, "From the middle of this year when artist activities are expected to resume, YG’s performance will expand, and the stock price will increase.”



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