[Click eStock] "HYBE, NewJeans' Activity Resumption to Boost Profits by at Least 20 Billion KRW from 2027"

Target Price Raised to 380,000 KRW

On November 13, Meritz Securities raised its target price for HYBE, stating, "With the official announcement that NewJeans members Haerin and Hyein will resume activities with ADOR, it is expected that from 2027, they could contribute at least 20 to 30 billion KRW in profits."

ADOR announced the previous day that NewJeans members Haerin and Hyein have decided to continue their activities with the company. It was also confirmed that Minji, Danielle, and Hanni have expressed their intention to return to group activities, and ADOR stated that it is "currently verifying the facts." Kim Minyoung, a researcher at Meritz Securities, commented, "It is necessary to confirm the official company position regarding the schedules and plans for all members," but added, "There is now greater visibility regarding the resumption of album, content, and tour schedules for at least two members starting next year."

Kim further noted, "This is the first time the company has explicitly mentioned 'protecting affiliated artists and supporting stable activities,' revealing its intention to resume activities." She added, "With the resumption of NewJeans' activities, we believe ADOR's core IP operations, which had been suspended, are now gradually entering a recovery phase." Accordingly, Meritz Securities maintained its 'Buy' investment opinion on HYBE and raised the fair value estimate from 3.7 million KRW to 3.8 million KRW.

It is expected that NewJeans will be able to fully resume music activities from at least the second half of next year. Kim stated, "Given the period of hiatus, we need to monitor future activity plans, but based on the overall decline in album sales compared to 2022-2023, we have provided our estimates." She added, "Assuming one comeback in the second half of next year (with album sales of approximately 900,000 copies) and two to three concerts in Korea and Japan (with a total audience of around 150,000), we estimate that NewJeans could contribute 6 to 7 billion KRW to operating profit next year."

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