[Click eStock] "HYBE, Earnings Estimates Adjusted... Target Price Down to 290,000 KRW"

Kiwoom Securities announced on the 27th that it is lowering the target price for HYBE to 290,000 KRW due to adjustments in earnings estimates. The investment rating was maintained at 'Buy.'

Namsoo Lee, a researcher at Kiwoom Securities, explained, "While maintaining the 'Buy' rating, we lowered the target price by adjusting earnings estimates and the target price-to-earnings ratio (Target P/E)."

HYBE achieved record-high operating profit in the fourth quarter of last year, with sales of 608.6 billion KRW and operating profit of 89.3 billion KRW. The growth in album and digital music sales from artist comebacks in Q4, continued large-scale performances in the second half, and solid content performance drove both revenue and profitability.

Researcher Namsoo Lee analyzed, "Despite the expansion in earnings, cost and selling and administrative expense efficiency continued, leading to the record operating profit. However, volatility outside of operations increased due to the reflection of valuation losses from the decline in SM Entertainment’s stock price and impairment recognition from changes in estimates for Ithaca Holdings."

HYBE’s sales for this year are projected to reach 2.3836 trillion KRW, with operating profit expected at 324.4 billion KRW. Namsoo Lee stated, "With ENHYPEN’s momentum and the growth of LE SSERAFIM and NewJeans, performances in 2024 are expected to expand further. Despite BTS’s absence, rising recognition of new artists has led to strong advertising and content segments, making the downside risk to earnings very limited."

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