"BTS World Tour Effect"... HYBE Expected to Achieve Record Results in Q2 [Click e Stock]

On May 21, Hana Securities stated that HYBE is expected to achieve record-breaking results starting from the second quarter of this year, as revenue from BTS's historic world tour will be reflected in the financials. The target stock price was set at 400,000 won, and the investment opinion of 'Buy' was maintained.

Kihoon Lee, a researcher at Hana Securities, noted in the report released that day, "The share prices of the entertainment agency industry are experiencing historic undervaluation, as the market is factoring in the unprecedented world tours of major third-generation artists, while the growth of fourth-generation artists has been somewhat disappointing." He added, "If, in addition to BTS's historic world tour performance in the second half, NewJeans' comeback, Catseye's strong achievements, and the debut of rookie Korean and U.S. girl groups are realized, it would not be surprising to see the current historically undervalued share price rebound up to 30 times the 2027 earnings at any time."

Considering the number of monthly active users (MAU) on Weverse in the first quarter and the high fan club revenue, indirect sales linked to BTS's world tour are expected to grow explosively. In addition, Cortis has already recorded 2.4 million pre-orders, which puts it in a position to rank second for the year after Stray Kids last year. Although the group has not yet reached its first anniversary, it is projected to become the third best-selling group this year, following BTS and Stray Kids. Furthermore, a four-member comeback by NewJeans is expected within the year, and a new rookie girl group is preparing to debut under a new label.

Researcher Lee stated, "Over the past decade, the operating profit of the K-pop industry has increased tenfold, and by 2027, the annual combined operating profit is expected to reach 1 trillion won." He further explained, "To raise the level to 2 trillion won in operating profit, at least one more team at the level of BTS will be needed, and HYBE has the highest potential to achieve this."

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