[Click eStock] "HYBE, No BTS Solo Activities Next Year... Target Price Down"

On the 20th, Kiwoom Securities lowered the target price for HYBE from 345,000 KRW to 320,000 KRW. The investment rating was maintained at 'Buy.'

HYBE is estimated to record 500 billion KRW in sales and 61.7 billion KRW in operating profit for the third quarter. These figures represent increases of 12.2% and 1.8%, respectively, compared to the same period last year, aligning with market expectations.

The solo activities of BTS members are evaluated to have effects exceeding those of the full group. However, considering that the full group comeback is expected around 2025, solo activities are anticipated to enter a hiatus next year. Nevertheless, the growth potential of Seventeen, whose album sales have peaked, has been confirmed, and the performance contribution from the girl group debuting through Dream Academy in the first half of next year is expected to begin.

Despite this, given the high possibility of sales decline due to the absence of BTS solo and full group activities, the introduction of the Weverse membership subscription model is a key point. Kiwoom Securities expects that if the subscription model is launched based on service category advancement and increased fandom satisfaction, the subscription retention rate is likely to be maintained at a high level.

Namsoo Lee, a researcher at Kiwoom Securities, stated, "We maintain the investment rating by offsetting the performance decline from the absence of BTS solo activities with existing artists and rookies, and reflecting the growth potential from the introduction of the Weverse subscription model," but added, "However, the target price is adjusted to 320,000 KRW due to the downward revision of earnings estimates."

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