[Click e-Stock] "HYBE, Abundant Momentum... Target Price Up"

Target Price Raised from 260,000 KRW to 280,000 KRW

Meritz Securities raised the target price for HYBE from 260,000 KRW to 280,000 KRW on the 16th, citing abundant momentum such as the full return of BTS members from military service. The investment rating was maintained as 'Buy.'

Kim Min-young, a researcher at Meritz Securities, explained, "Expectations for BTS solo activities and the full group's return from military service, shortened monetization periods for junior artists, and high growth of localized groups will increase the growth and earnings contribution of intellectual property (IP). Accordingly, we have raised the fair price target based on revised earnings estimates and maintain our top pick rating within the sector."

HYBE's fourth-quarter results for last year are expected to meet market forecasts. Researcher Kim said, "The fourth-quarter earnings are expected to show revenue of 663.3 billion KRW, up 9.0% year-on-year, and operating profit of 83.7 billion KRW, down 6.1%, in line with consensus (average securities firm forecasts). Major artists such as BTS Jin, TXT, Seventeen, I-LAND, and TO1 made comebacks, and world tours by Seventeen, ENHYPEN, and TXT are reflected. Despite BTS's absence, the strong drawing power of individual artists is expected to result in a record quarterly attendance of approximately 970,000 people," he analyzed. He added, "However, operating profit will meet the lowered market expectations due to increased incentives reflecting improved performance in expenses."

Despite BTS's absence, growth from junior artists is expected to keep the annual performance for 2024 at the previous year's level. Researcher Kim said, "Junior artists have shown steep growth, and global exposure and fandom of individual IPs, including junior artists, are steadily increasing. Therefore, despite a decline in album sales and the absence of mega IPs, 2024 is expected to record annual performance at the previous year's level."

This year, abundant momentum is expected with BTS's full group comeback and rookie debuts. Researcher Kim explained, "In February, BTS J-Hope's solo tour is scheduled, and in April, Seventeen and ENHYPEN will participate in global festivals. The monetization phase for junior artists will begin in earnest with solo concerts led by Boy Next Door. Additionally, three new boy groups are scheduled to debut," he said.

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