YG Entertainment is set to have a big year financially, according to a report from Shinhan Financial. According to Shinhan’s analysis, a combination of new releases from YG artists and the expansion of fashion brand Nonagon and cosmetics brand Moonshot are expected to equate to increasing share prices.
YG’s investment in creating its “K-Pop Cluster,” a K-Pop themed tourist destination that will feature an adjoining shopping center and amusement park, is another factor cited for this favorable analysis. “K-Pop Cluster’s attractions and easy access from Seoul and Incheon International Airport will make it a top tourist destination for foreign visitors,” Shinhan Financial said.
“We anticipate total sales to increase 19.2 percent from last year to 180 billion won (166.5 million USD), and business profits to increase by 47.1 percent to 32 billion won (29.5 million USD) in 2015,” the report continued. It also listed new releases from popular YG artists as major contributors to the company’s growth in 2015, including new releases from iKON, BIGBANG in the first quarter of 2015, WINNER, CL, and PSY in quarter two, a new girl group in the third quarter, and 2NE1 in quarter four.
The report advises that YG’s stock is one to buy in 2015 and set its target price at 61,500 won per share (57 dollars).