[Click eStock] "HYBE, No Damage to Growth Potential" ... Target Price Down 40%

[Asia Economy Reporter Ji Yeon-jin] Yuanta Securities announced on the 1st that it has lowered the target price for HYBE by 40% from the previous 420,000 KRW to 252,000 KRW, following a downward revision of operating profit forecasts for next year and 2024.

Researcher Lee Hye-in of Yuanta Securities stated, "Due to BTS's decision to focus on individual activities, a downward revision of HYBE's performance from this year through 2024 is inevitable," but added, "The intellectual property (IP)-based revenue-generating capability and growth potential from IP expansion that HYBE possesses remain intact."

Since HYBE owns Weverse, the world's number one entertainment platform, long-term growth is expected, and the revenue generated per fan is relatively higher compared to competitors, indicating that HYBE has stronger revenue-generating power and greater growth expectations than competing entertainment companies.

Researcher Lee said, "Whether BTS members will start solo or unit tours, the timing and scale of these, as well as the faster-than-expected growth of several artists other than BTS, and any structural changes in market share following the launch of Weverse 2.0 could act as variables for upward revisions in performance," while maintaining a buy investment opinion.

HYBE's sales this year are expected to increase by 76% year-on-year to 489.6 billion KRW, and operating profit is forecasted to rise by 210% to 87 billion KRW. Album sales are expected to increase by 65% to 214.1 billion KRW, with concert sales at 81.1 billion KRW, and licensing sales at 90.3 billion KRW. Next year's sales are projected to decrease by 5% to 1.6992 trillion KRW, and operating profit is also expected to decline by 5% to 223.5 billion KRW.

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