[Click eStock] HYBE, Platform Expansion and Lineup Strengthening... Target Price Up">

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] NH Investment & Securities evaluated HYBE on the 3rd, stating that it has secured a unique position as the world's only comprehensive entertainment platform operator and that its artist lineup is also being strengthened. They raised the target stock price from the previous 350,000 KRW to 370,000 KRW while maintaining a 'Buy' investment rating.

Researcher Lee Hwajeong of NH Investment & Securities said, "HYBE has secured a dominant position as the world's only comprehensive entertainment platform operator by strengthening its core business (music) lineup and expanding its platform business through acquiring stakes in YG Plus (18%) and Ithaca Holdings (100%), as well as Naver V Live division, securing global artist intellectual property (IP), and successfully onboarding mega artist (BLACKPINK) on Weverse Shop." She added, "Considering the upward trend in ARPPU (average revenue per paying user) of existing subscribers and the expansion of traffic due to the onboarding of major global artists, we have revised upward the platform's operating value reflecting the increased visibility of Weverse's growth."

The artist lineup has also been strengthened. Through the acquisition of Ithaca, Justin Bieber and Ariana Grande were secured. The researcher explained, "The acquisition effect will be fully realized when their concert tours resume and when they join Weverse. The North American tour of Justin Bieber, starting in February next year, is highly anticipated."

In-house rookie development is also progressing smoothly. Trainee A, presumed to be the next debut group under Big Hit Music, has formed a highly loyal fandom, securing 240,000 YouTube subscribers in just six months. The researcher said, "Monetization is expected to be possible immediately after debut," adding, "The debut is expected around mid-next year."

HYBE's Q2 performance showed sales of 278.6 billion KRW, a 79% increase compared to the same period last year, and operating profit of 28 billion KRW, a 6% decrease, falling short of market expectations (consensus). The researcher analyzed, "This is due to one-time costs (over 10 billion KRW related to the Ithaca acquisition) and amortization of purchase price allocation (PPA) related to Ithaca," adding, "Sales from McDonald's, Butter, and fan meeting MD will be accounted for in Q3 due to global shipping conditions."

This content was produced with the assistance of AI translation services.