[Click eStock] Cube Enter, Operating Profit Growth of 122% This Year

[Asia Economy Reporter Lee Seon-ae] Kiwoom Securities expects Cube Entertainment's operating profit to more than double this year. No investment opinion or target price was provided.

On the 18th, Namsoo Lee, a researcher at Kiwoom Securities, stated, "We forecast a 37% increase in sales and a 122% growth in operating profit in 2023 compared to the previous year," adding, "The rise of (G)I-DLE as a million-seller and the expansion of their world tour will clearly drive volume growth that will outweigh cost increases." (G)I-DLE's album sales last year grew by 435% compared to 2021.

Additionally, Cube Entertainment is expected to strengthen its lineup with two new rookie groups, increasing the total to six teams, which will also help resolve the risk associated with having only one team.

Researcher Lee emphasized, "If the ban on Korean entertainment (Hallyu ban) is lifted, the global success of (G)I-DLE, which includes Chinese members, will become even more complete," and added, "As they are the most active group with a growing global fandom, the company's additional growth prospects following the lifting of the ban are a key point not to be missed." Notably, Chinese member Yuqi maintains a top-tier position among Korean artists with 7.49 million Weibo followers.

Meanwhile, fourth-quarter sales last year are expected to reach 37.6 billion KRW, with operating profit turning positive at 3.1 billion KRW. For 2023, sales are projected at 160.5 billion KRW, operating profit at 16.2 billion KRW, with entertainment segment sales at 94.3 billion KRW and cosmetics at 66.1 billion KRW.