[Click eStock] "HYBE, Possible 20% Growth in Album Sales This Year... Target Price Down"

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Motor Securities stated on the 8th that even excluding BTS, HYBE's global tour in the second half of the year is expected to attract 800,000 attendees, and the annual album sales growth rate is likely to be in the 20% range. However, they maintained a 'Buy' investment rating while lowering the target price to 250,000 KRW.

Hyundai Motor Securities researcher Kim Hyun-yong analyzed, "Even excluding the full BTS tour, the number of concert attendees in the second half of the year is confirmed to exceed 800,000," and "Album sales in the first half are expected to mark a growth rate of over 45% compared to the previous year."

Researcher Kim also conservatively assumed a 0-5% growth rate in the second half and predicted that achieving an annual total of 20 million albums sold, a 20% increase from the previous year, would be feasible.

The positive outlook is due to the expectation that the K-POP market will continue to deliver overwhelming performance compared to other growth sectors.

Researcher Kim stated, "Album sales in 2022 are projected to reach 83 million, a 30% increase from the previous year," and added, "Considering that the first half (36.2 million) already achieved 28% growth compared to the previous year, this seems achievable."

He also evaluated, "The number of concert attendees this year is expected to be 4.7 million (18 times the previous year), recovering 71% of the 2019 market," and "If additional year-end concerts and artists from small and medium-sized agencies join, reaching 5 million attendees is also anticipated."

The launch of Weverse 2.0 is in its final stages. The current MAU (Monthly Active Users), at around 6 to 7 million, is expected to rise to the 30 million range. Ultimately, it is anticipated to evolve into a comprehensive platform business encompassing K-POP, content, commerce, NFT/games, and more.

Researcher Kim analyzed, "The target price was lowered by 12% from the previous level reflecting the decline in market multiples," and added, "Considering the large-scale global tours by artists in the second half and the integrated Weverse launch, the current stock price is in a short-term trading range."

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