On the 23rd, Hana Financial Investment reported that YG Entertainment (₩26,400 +6.02%) has maintained a “Buy” rating as the company’s future uncertainties seem to be resolving.
Lee Ki Hoon, a Hana Financial Investment researcher, said, “The repayment of redeemable convertible preferred shares (RCPS) to LVMH through investment company “Great World Music Investment, the completion of police investigations, and G-Dragon’s military discharge are all expected to be completed within one month. This potentially means that YG Entertainment will have a promising 2020, especially with high possibilities of BIGBANG and Treasure 13 promotions.”
He said that YG Entertainment’s estimated 3rd quarter sales and operating profit are at ₩63.9 billion and ₩-1.3 billion won, respectively. He further added that YGE will recover in the 4th quarter with AKMU’s recent release and Winner and Blackpink’s upcoming comebacks. Lee Ki Hoon noted, “YG Entertainment’s two key events is BIGBANG contract renewal and Treasure 13’s debut. Although it has not been officially decided yet, the possibility of BIGBANG contract renewal is high and Treasure 13 will most likely debut in the 1st quarter of 2020 at the latest.”
source: hankyung, hana via /u/PicklesandHam
Also, Taeyang and GD are discharged from military this week and over 3,000 fans from Korea, Japan and China are already expected to attend their discharge ceremony. YG has asked fans not to visit the ceremonies (because of the strengthened quarantines due to swine fever in the area).