NH Investment & Securities has evaluated that the biggest uncertainty surrounding YG Entertainment has been resolved with the renewal of BLACKPINK's contract, and currently, there are no additional concerns.
Researcher Lee Hwa-jung, in a report published on December 18, maintained the target price (87,000 KRW) and investment opinion (Buy) for YG Entertainment as previously set. She noted, "With the biggest uncertainty being resolved through BLACKPINK's contract renewal and the successful global performance of rookie group BABYMONSTER, there are no remaining concerns. The high growth of BABYMONSTER and TREASURE, or BLACKPINK's comeback event, are expected to serve as a trigger for an upward price movement."
Particularly regarding BLACKPINK's recent contract renewal, she conveyed, "The rise in artist distribution rates is limited, and the contract fee is also decided within a recoverable range."
About the yet-to-be-confirmed individual contracts, she anticipated, "Individual contracts are expected to proceed in a flexible manner. For personal activities that require BLACKPINK's title, such as solo albums, collaboration with the company is highly likely due to trademark rights owned by the company."
For future individual activities of the members, she predicted, "In cases of personal activities that rely more on individual talents, like participating in shows or launching brand businesses, autonomy will be ensured. However, all individual activities will be carried out within the scope that does not interfere with group activities."
Regarding BABYMONSTER, she assessed, "Considering the already established fan base, the likelihood of continued success seems high."
Previously, the girl group BLACKPINK renewed their contract with YG Entertainment to continue their group activities. YG announced on the 6th, "The company has completed the board resolution regarding the renewal of the exclusive contract for all four members of our artist BLACKPINK."
With this, YG Entertainment has secured its biggest intellectual property (IP). YG stated in a press release distributed after the announcement, "After careful discussion with BLACKPINK, we have established an exclusive contract based on strong trust for group activities."
Following this, BLACKPINK plans to continue group activities such as releasing new albums and embarking on a large-scale world tour with YG's support. Yang Hyun-suk, YG's general producer, expressed, "I am pleased to continue our relationship with BLACKPINK and will do my best to ensure they shine even brighter in the global music market."
BLACKPINK debuted on August 8, 2016, with the double title tracks 'Whistle' and 'Boombayah'. Members Jennie, Jisoo, Rosé, and Lisa, as YG's new girl group, gained immense attention from the outset, combining talent and beauty.
They have risen to K-pop stardom, achieving success with every release, including 'Playing with Fire', 'As If It's Your Last', 'DDU-DU DDU-DU', 'Kill This Love', 'Lovesick Girls', 'Pink Venom', and 'Shut Down'.
Their second full album 'BORN PINK', released in September last year, marked their position as global stars by becoming the first K-pop girl group to top both the U.S. Billboard 200 and the UK Official Album Chart Top 100.
