Translated by google translate
Independent Research Researcher Lee Chung-heon said on the 31st, "Black Pink's second new song surpassed 100 million views on YouTube in 41 hours of release," and suggested a target price of YG PLUS at 8,000 won. It is evaluated that there is about 45% upside potential compared to the current stock price.
YG PLUS is in charge of distribution of music sources and records within the YG group, and is in charge of producing and selling goods. As of the first half of the year, 25% of the sales of the music division (24.1 billion won), or 6.1 billion won, came from the distribution of music and albums. The remaining 18 billion won is a fee for operating Naver's music platform'Vive'.
YG PLUS is expected to be in charge of the music and music divisions from the domestic market to the overseas market.
The researcher said, "YG Entertainment is currently in charge of sales of music and albums in overseas markets, so overseas sales are rarely generated. However, when the contract period with YG Entertainment and overseas companies ends, YG PLUS will also distribute and sell overseas music and music. It is expected to be in charge."
Black Pink and Treasure's album sales in the second half of the year should also be noted. YG PLUS has the effect of improving performance as YG artists consume more streaming music and the higher their sales volume.
"The 3rd quarter album sales estimates for Black Pink, who made their comeback on June 26, and Treasure, which debuted in July, are 500,000 copies of Black Pink and 250,000 copies of Treasure." "The first and second albums of the company are continually breaking new records, and the regular album released on October 2 is expected to be an additional upside to this year's music and record sales."
Also, a new girl group'Baby Monster (pseudonym)' is about to debut. Existing artists such as'Akdong Musician' and'Song Min-ho' will also continue to comeback from September to October. 'Big Bang' is expected to make a comeback in the first half of next year. The growth of the music and record sector is expected to accelerate.
Goods manufacturing and sales are also expected to accelerate. The researcher said, "When major artists were active in 2018, sales of goods recorded 10 billion won." "Black Pink's global fandom and Treasure's popularity in Korea are increasing, so next year, more than 10 billion won in goods It is expected that it will be possible to achieve scale sales."
Accordingly, Research Rum predicts that the 2020 operating profit of YG PLUS will increase by 446.5% from the previous year to 6.6 billion won. Sales are also forecast to increase by 11.7% to 139.1 billion won. For the fair value, we applied a stock price-earnings ratio (PER) of 40x to the expected earnings per share (EPS) of KRW200 for 2021.
Reporter Son Eomji, Metro newspaper
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