[Click eStock] "HYBE, the Start of Cultural Export... Leading the Overseas Music Market"

[Asia Economy Reporter Hyungsoo Park] Ebest Investment & Securities evaluated on the 5th that HYBE (formerly Big Hit) acquiring Ithaca Holdings is not only an event that caused a tectonic shift across the entertainment industry but also holds significance at the national level. The target stock price was raised to 502,000 KRW.

Researcher Ahn Jina of Ebest Investment & Securities said, "This is the first case of exporting Korean culture and business to G7 advanced countries, overturning the landscape," adding, "With the combination of Korea's advanced IT technology and the entertainment industry, HYBE is expected to take the lead in the music industry, which was mainly dominated by major advanced countries, through a new business model."

She continued, "HYBE's acquisition of Ithaca Holdings will become a global reference," and "Its bargaining power with larger overseas labels will also be strengthened."

Researcher Ahn emphasized, "During the ongoing COVID-19 pandemic, securing an artist lineup with strong world tour influence is key," and "By expanding indirect sales centered on fan platforms and having a diverse lineup of top domestic and international artists, HYBE's global music market share will rise more steeply than expected once tours resume after COVID-19."

She explained, "The dream that Korea could take the lead in the global music market is not something that can be ruled out."

Researcher Ahn said, "Although the profit growth rate is favorable, the possibility of faster external growth compared to profit growth speed is high," and "Considering it is an industry with a high leverage effect and the creation of high added value derived from it, the corporate value has such high potential that its upper limit cannot be gauged."