[Click eStock] "HYBE Meets Q4 Expectations... Improvement Expected Until 2026"

On the 17th, Korea Investment & Securities maintained a target price of 290,000 KRW for HYBE, stating that the company is expected to continue its performance improvement trend through 2026, meeting expectations for the fourth quarter. The investment rating was maintained as 'Buy.'

Researcher Ando Young said, "The period until 2026 will see steep growth in both the core and ancillary businesses," adding, "In the core business, the BTS comeback effect and growth from low tenure will be evident, while outside the core business, Weverse will begin contributing to profits."

Researcher Ando also noted, "Weverse DM's impact will be visible in the fourth quarter results due to TXT joining the platform," and predicted, "Subscription numbers will increase this year with additional HYBE artists joining."

He added, "The Weverse digital membership launched in December and will be reflected in results starting from the first quarter, and video advertising revenue will also be fully reflected from this year."

The fourth quarter performance is also evaluated to be in line with expectations. Fourth quarter revenue is estimated at 648.1 billion KRW, a 7% increase compared to the same period last year, and operating profit is estimated at 89.5 billion KRW, the same as the previous year. This is expected to meet the consensus operating profit of 85.2 billion KRW.

Researcher Ando said, "Operating profit is expected to increase significantly compared to the first to third quarters due to multiple boy group album releases and strong performances in concerts and MD," but noted, "However, the fourth quarter profit estimate was revised downward reflecting one-time performance bonuses."

He added, "Outside of operations, unlike the previous quarter, foreign exchange gains and equity valuation gains were recognized, but due to the nature of the fourth quarter, there is a possibility of asset impairment losses being recognized."

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