YG Entertainment’s financial dynamics shifted as Yuanta Securities lowered the target stock price from 75,000 to 65,000 won due to projected sales and profit decrease. Yuanta Securities analyst Lee Hwan-wook highlighted a 32.7% decrease in expected sales and a 51.5% decrease in expected operating profit for YG. Lee projected a downturn in combined album sales of YG-affiliated K-pop IPs by 18.7% next year, except for BLACKPINK. BABYMONSTER’s sales are expected to offset BLACKPINK’s hiatus.
In the wake of the highly anticipated debut of YG Entertainment’s latest endeavour, BABYMONSTER, on November 27th, financial dynamics within the entertainment giant underwent a shift as reports suggested that Yuanta Securities decided to lower the target stock price for YG from 75,000 to 65,000 won.
The adjustment was based on an analysis by Yuanta Securities analyst LeeHwan-wook, who highlighted a projected decrease in YG’s expected sales and operating profit for the coming year and told kbizoom, “Next year’s expected sales and operating profit of YG are projected to decrease by 32.7% and 51.5% compared to the previous year, amounting to 369.3 billion won and 46.1 billion won, respectively.