[Click eStock] HYBE Without Umbrella, Reflecting BTS Gap in Second Half

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[Asia Economy Reporter Junho Hwang] "The absence of BTS is significant."

Kiwoom Securities forecasted that HYBE will record its highest-ever performance in the second quarter of this year, but lowered the target stock price to 265,000 KRW on the 23rd. The sluggish activities of BTS are expected to impact cost efficiency more than sales, leading to a greater decrease in profits.

Kiwoom Securities predicted that the sales for the second quarter of this year will increase by 70.3% year-on-year to 474.6 billion KRW, and operating profit will rise by 213.5% year-on-year to 87.8 billion KRW, achieving the highest performance ever. This is due to BTS's Las Vegas concert, performance merchandise, and IP licensing business.

However, Kiwoom expects that BTS's absence will become more apparent starting from the second half of this year. Considering BTS's class, it is judged that it will be difficult to cover the gap in BTS's activities with the activities of other artists.

Namsoo Lee, a researcher at Kiwoom Securities, stated, "Although there is a possibility that album sales and content improvement may increase due to BTS members' solo or unit activities, it is judged that the irreplaceable areas such as concerts/merchandise and advertising/appearance fees will find it difficult to escape negative impacts."

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