[Featured Stock] BTS Comeback Anticipation... HYBE Returns to 9 Trillion Market Cap at Highest Price Since 'Min Heejin Incident'

Record High After Min Hee-jin Incident, Market Cap Returns to 9 Trillion Won
BTS Comeback Next Year, Growing Expectations for Entertainment Earnings
4 Entertainment Companies Forecast 31% Sales Increase and 93% Operating Profit Growth Next Year

HYBE has returned to a market capitalization of 9 trillion won, hitting its highest price since the 'Min Hee-jin incident.' The anticipation of BTS's full-group comeback has surfaced in the securities market, seemingly influencing the stock price.

As of 9:31 AM on the 19th, HYBE's stock was trading at 217,000 won, up 2.60% (5,500 won) from the previous trading day. This is the highest price since the internal turmoil caused by the 'Min Hee-jin incident' in April. The market capitalization reached 9.04 trillion won.

Daishin Securities expressed expectations for performance growth in the entertainment sector next year due to the comebacks of BTS and BLACKPINK, recommending an 'Overweight' investment rating. HYBE was selected as the top pick, with SM Entertainment as the second choice. BTS members are expected to complete their military service by June next year, after which full-group activities are anticipated.

Researcher Lim Su-jin of Daishin Securities analyzed, "This year, the entertainment industry faced continuous issues starting with the HYBE-Adore incident in April, and album sales, which had been growing for over a decade, began to decline. However, recently, expectations for growth next year have gradually emerged, leading to a recovery in stock prices." Furthermore, she noted, "Next year, album sales growth is expected due to the full-group comebacks of BTS and BLACKPINK, the revival of fandom competition psychology, and the monetization timing of low-experience IP (intellectual property)." She added, "With performance growth next year, a favorable stock price trend is expected to continue."

According to Daishin Securities, as of last year, BTS and BLACKPINK accounted for 14% of the total domestic album market. The expected audience for their world tours surpasses the combined audience of all artists under their agencies, indicating significant growth potential. Additionally, the combined YouTube subscribers of the two groups total 170 million, which is expected to expand interest not only in their comeback albums but also in K-pop as a whole. The average sales of the four major entertainment companies?HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment?are projected to increase by 31% next year compared to this year, with operating profits soaring by 93%.

Although the HYBE-Adore incident has not yet been resolved, it appears that this negative factor no longer affects the stock price. Former Adore CEO Min Hee-jin has notified the exercise of a put option worth 26 billion won, and NewJeans members have issued a 'final ultimatum,' stating they will terminate their exclusive contracts if their demands, including Min Hee-jin's reinstatement as CEO, are not addressed.

Meanwhile, 250 minority shareholders of HYBE recently sent a statement to CEO Lee Jae-sang, saying, "Despite suffering damages such as stock price declines due to unnecessary media battles with the former CEO's side over the past several months, HYBE minority shareholders have remained silent to prevent further confusion." They added, "We can no longer stand by as HYBE, which promotes national prestige as a K-pop leader and contributes to the country as an export company, is excessively attacked by the media, politics, and certain fandoms," urging the company to reflect and respond.