[Click eStock] "HYBE, BTS Momentum Returns... Upward Stock Trend"

On January 14, Yuanta Securities raised its target price for HYBE from 395,000 won to 420,000 won, citing improved investor sentiment driven by new momentum such as the monetization of the US-localized group 'Cat's Eye.' The investment opinion was maintained as 'Buy.'

HYBE's consolidated sales for the fourth quarter of last year are expected to reach 722.6 billion won (down 0.5% year-on-year), exceeding market expectations, while operating profit is projected at 20.8 billion won (down 67.8%), falling short of market forecasts.

Lee Hwanwook, a researcher at Yuanta Securities, stated, "Despite the inactivity of mature IPs, the rapid expansion of fandom for diversified younger IPs has driven top-line growth." However, he added, "As in the previous quarter, profit improvement is expected to be somewhat limited due to increased content investment, restructuring of the North American business, and higher marketing expenses at consolidated subsidiaries (games)."

HYBE's total album sales for the fourth quarter of last year are estimated to be around 6.4 million units. Strong sales of younger IPs are particularly notable, with BoyNextDoor at 1.3 million, Japanese-localized group &TEAM at 1.2 million, TWS at 800,000, and KATSEYE at 750,000 units. The combined monthly Spotify listeners also reached approximately 135 million, showing double-digit growth compared to the previous quarter.

Lee noted, "The pace of performance improvement is expected to slow due to the rising proportion of younger IPs." He added, "Tour MD results are also expected to decrease compared to the previous quarter. However, strong sales of season's greetings and the impact of BTS (Jimin and Jungkook) content released on Disney+ are expected to drive growth in indirect participation-type results."

Starting with the release of the BTS world tour on January 14, and the launch of the fifth full-length album in mid-March (March 20), overall company performance is expected to improve. Tour results are projected to be fully reflected from the second quarter of this year. Lee stated, "The lower end of the stock price will be gradually raised, and tour results will help alleviate valuation pressure." He also forecasted, "The MD sales strategy will be strengthened compared to market concerns."