[Click eStock] HYBE Fair Stock Price Lowered to 230,000 Won↓

Daol Investment & Securities lowered the target price of HYBE to 230,000 KRW on the 8th. The investment rating was maintained as Buy.

The consolidated sales for the third quarter were estimated at 531.8 billion KRW, with an operating profit of 51.6 billion KRW.

Album sales were projected at 187.2 billion KRW. Performance sales were estimated at 113.6 billion KRW, and content sales at 74.3 billion KRW.

The estimates were slightly revised downward assuming a decrease in NewJeans' activities in the fourth quarter and next year. However, the investment rating was maintained as Buy due to the scheduled comeback of the strong IP BTS.

In August, HYBE announced a new strategy called "HYBE 2.0," expressing its intention to strengthen its gaming business. This is being carried out through its subsidiary HYBE IM, and a paid-in capital increase was conducted to expand the business.

In addition to publishing, in-house development is also underway, and these games are pure games that do not use entertainment IP. Therefore, HYBE is making a full-scale entry into the gaming market and will compete within the same market as existing games.

Businesses with publishing platforms have an advantage, and the composition of personnel is important for in-house developed games. Although HYBE owns the fan platform Weverse, since these are general games, it is uncertain whether advertising on Weverse will lead to tangible results. Additionally, in-house development is judged to have high uncertainty due to the company's lack of experience.