According to a financial researcher, following various external factors, YG's stock price has dropped 41% from its peak stock price. Although there's a lot of interest from investors, with the strict regulations in China (THAAD) there are concerns.
YG has recorded their highest profit and revenue in their history this past Q1 to Q3 in 2016 due to their activity expansion in the Chinese market. However, because working in China is a bit unstable at the moment due to the THAAD missile issue, experts are assuming that YG will focus on Japanese market which is a cash cow.
Samsung Securities financial researcher Yang explained, "Though the company has not seen any concert cancellations or anything to that degree, we are continuously monitoring China's limited regulations. YG will be focusing more on the Japanese market this season."
It was also revealed that the main concern for revenue decline forecast was due to the Big Bang members preparing for military services. However, the members do have plans for solo activities as well as end-of-the-year performances.
Furthermore, "Plans for a Japan tour has been settled which will play a big role for increased revenue. Emphasizing on their solo careers, market sales look positive for this year compared to the previous."
YG Entertainment is said to be preparing for the debut of a new girl group following the success of Black Pink. With YG's revenues from their acting division increased by 10% this past year, they recently recruited a new producer to be in charge of all the video content business industry.
YG Entertainment's stock price closed at 26,100 KRW ($22.39 USD) per share on January 25.
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