[Click eStock] "HYBE Resolves BTS Military Enlistment Uncertainty... Opportunity to Reevaluate Lineup Beyond BTS"

[Asia Economy Reporter Kwon Jae-hee] NH Investment & Securities maintained its 'Buy' rating and target price of 250,000 KRW for HYBE on the 18th.

HYBE announced that all BTS members will sequentially fulfill their military service obligations, starting with the eldest member Jin (born in 1992) by the end of this year. Jin is expected to enlist around November to December after releasing his solo album at the end of October. The leader RM (born in 1994), who has scheduled solo activities next, is also likely to enlist next year after releasing his solo album. Although the schedules for other members' solo activities and military enlistments have not been finalized, the shareholder letter expressed hope to resume full-group activities around 2025, suggesting that all members will sequentially enlist by the first half of next year.

Therefore, concerns about uncertainty regarding the resumption of group activities after discharge are unnecessary. One of BTS's global popularity factors is the bond among members, and the artists have repeatedly acknowledged this. At the concert on the 15th, BTS directly expressed their commitment to remain together as BTS even 30 years from now. Accordingly, there is expected to be no change to the company's previous estimates (individual activities centered in 2023, sub-unit activities in 2024, and full-group activities resuming in 2025).

Researcher Lee Hwa-jung of NH Investment & Securities analyzed, "Currently, HYBE's stock price is trading at a PER of 23.6 times, which is about 10-20% undervalued compared to competitors. This is because the uncertainty that caused stock price weakness due to BTS's military enlistment and group activity plans has been resolved, and accordingly, a revaluation of the lineup beyond BTS is possible, which can fill BTS's vacancy."

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