Hana Securities analyzed that the scale of BLACKPINK's world tour, which will resume in July, has expanded to double the size per performance compared to the previous one. It subsequently raised its target stock price from 88,000 won to 110,000 won and suggested a 'buy' investment opinion.
Hana Securities projected the estimated operating profit for this year to be 71.5 billion won, approximately 30% higher than the previous forecast, considering BLACKPINK's management revenue (world tour and album).
Lee Gi-hoon, a researcher at Hana Securities, noted, 'Considering that our annual profit forecast was around 40 billion won earlier this year, it is being raised at a very rapid pace,' and added, 'We must also consider the possibility of a structural earnings surprise as we are still estimating the MD revenue outlook conservatively.'
The scale of BLACKPINK's world tour, which will resume in July, is continuously expanding. With 13 additional performances beyond the already announced schedule, it has been announced to cover about 31 performances over approximately 7 months, targeting around 1.8 million people. This researcher explained, 'Considering that the previous tour was conducted for about a year from 2022 with 66 performances and 1.8 million people, the size per performance has grown about twofold, and considering the additional performance schedule, the world tour will exceed 2 million attendees.'
The rapid growth of MD sales is also noticeable. While the average MD sales per person during past BLACKPINK world tours were around 40,000 won, it is estimated that about 75,000 won in sales occurred during the recent BABYMONSTER tour.
In the second half, the number of audience members for YG Entertainment's tours is expected to be at least 1.5 million, and even assuming 50,000 won per person with the improved MD strategy, the second half's MD sales would amount to 75 billion won. This researcher emphasized, 'Considering that the average quarterly MD sales in the first half of last year were around 16 billion won, it indicates a growth of more than double in just one year.'
It was also noted that the shortened comeback cycle of the intellectual property (IP) held by YG Entertainment is positive. This researcher pointed out, 'To solve the issue of slow album release speed in the medium to long term, the internal systems have been replaced, allowing multiple IPs to engage in simultaneous activities through multiple album releases,' and stated, 'It is necessary to continue watching the changing YG Entertainment.'