YG Entertainment on Track to Improve Financials with Full-Force Artist Activities in Second Half of Year; Target Price Raised by 27.3%

YG Entertainment expects improved financial results as its artists resume full-scale activities in the second half of the year. iM Securities has maintained a “buy” rating for YG Entertainment while raising its target price from 88,000 won to 112,000 won, a 27.3% increase. The firm gave positive feedback on faster album release timelines achieved through internal system upgrades and the expansion of its IP portfolio. Hyang Ji-won, an analyst at iM Securities, stated, “All groups under the company will resume activities, marking the official start of full operation of their artist pipelines.” Specifically, BLACKPINK is set to restart its world tour and release new music, BABYMONSTER will embark on a North American tour and release new material, and TREASURE will release new albums and resume its world tour. WINNER is also planning concerts in South Korea and Japan for the first time in a long time. The scale of BLACKPINK’s tour is particularly noteworthy. As of now, 31 stadium-sized shows have been announced for the world tour. In their previous tour, they held 66 performances over one year, attracting 1.8 million fans—already reaching a similar level. With attendance per show more than doubling, expectations for sales from related merchandise are also rising. Merchandise sales are experiencing strong growth as well. Since the fourth quarter of last year, MD sales have exceeded 20 billion won for two consecutive quarters, surpassing the average quarterly MD sales of around 19 billion won during BLACKPINK’s 2022–2023 world tours. The rapid growth of BABYMONSTER, just two years after their Debut, along with the success of changes in their MD sales strategy, is evident. With plans for the debut of new boy groups next year and solo songs from members of a new four-member girl group, fluctuations in performance caused by reliance on a single IP are expected to gradually decrease. Additionally, the successful solo activities of BLACKPINK’s members have expanded their fanbase, and as the group approaches its 10th anniversary next year, there is potential for further financial improvement driven by MD sales and music releases. Meanwhile, Kang Seungyoon of WINNER is currently on his “PASSAGE #2” solo concert tour, which he has been holding for the first time in four years. He has successfully completed shows in Busan, Daegu, Daejeon, and Gwangju, receiving praise for his strong vocal skills and well-rehearsed performances. He will hold his final concerts in South Korea at Myunghwa Live Hall on the 28th and March 1st, followed by a Japanese tour starting with shows in Osaka on March 14th and Tokyo on March 15th.