[Click eStock] "HYBE, No Concern Over BTS Hiatus... Target Price Up"

by Son Seonhee

Published 24 Apr.2023 08:00(KST)

Meritz Securities on the 24th raised the target price for HYBE from the previous 230,000 KRW to 270,000 KRW, an increase of about 17.4%.

HYBE's estimated sales for the first quarter of this year are 477.5 billion KRW, with an operating profit of 47.9 billion KRW. These figures represent increases of 67.6% and 29.2%, respectively, compared to the same period last year, surpassing market expectations. At the beginning of the year, album sales from NewJeans, TXT, and BSS showed strong performance, with album sales expected to reach 201 billion KRW, more than three times that of the same period last year. On the other hand, the performance results from Enhypen and TXT's world tours are mostly expected to be reflected in the second quarter of this year, so first-quarter concert sales are projected to decrease by 7% to 57 billion KRW.

Girl group 'NewJeans' under HYBE

For the full year, sales are expected to reach 2.1368 trillion KRW, with an operating profit of 242.8 billion KRW. Despite the military enlistment of BTS members, continuous growth is expected as the fandoms of most artists such as Seventeen, LE SSERAFIM, Enhypen, and NewJeans expand.

Jisoo Jung, a researcher at Meritz Securities, said, "This year's new IPs will start with KOZ Entertainment's 'Boy Next Door,' debuting on May 30, followed by Pledis boy group and a local girl group being prepared in collaboration with U.S. UMG, maintaining high market interest."