BlackPink's YG, Will Big Hit hold hands and get wings?

Attention is focusing on whether YG Entertainment's stock price will be able to rise through cooperation with Big Hit and whether its artists will resume their activities this year.

Shares of YG Entertainment rose 2.24 percent to 45,700 won by the end of February this year after rising 63 percent last year.

The company's performance in the fourth quarter of last year, which was released on February 24, shows the company's current status. BLACKPINK, virtually the only artist to be active, sold 1.3 million albums and led the performance through online concert MD sales.

YG Entertainment saw its sales (KRW 83.4 billion) rise only 27% in the fourth quarter of last year compared to the same period last year, but its operating profit (KRW 5.4 billion) increased by 436%. Nam Hyo-ji, a researcher at KTB Investment & Securities, said, "BLACKPINK's regular album release in the fourth quarter has greatly improved the company's performance."

The financial investment industry sees whether Big Bang and other artists will resume their activities this year and whether they will diversify their businesses through collaboration with Big Hit as variables that will determine the direction of stock prices.

"If Big Bang's comeback is confirmed, the earnings forecast may be raised," said Sung Joon-won, a researcher at Shinhan Financial Investment. "If collaboration with Weverse (Big Hit's community platform) goes ahead as scheduled, additional sales can be expanded in the second half."

On January 27, a triangular alliance was formed between YG Entertainment, Naver, and Big Hit. Big Hit transferred Naver's V LIVE business, exceeded 49% of Weverse Company, and invested in YG PLUS, a music and music distributor of YG.

According to FnGuide, the average sales and operating profit (consensus) of YG Entertainment this year is expected to increase 36.9% and 220.3% year-on-year to KRW 349.4 billion and KRW 34.4 billion, respectively. The average target stock price is KRW 62,300.

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