[Market Focus] BTS Activity Plans Clarified... HYBE Rises Over 5%

With BTS's activity plans becoming more concrete, shares of HYBE are rising amid expectations of a sharp increase in performance.

As of 10:12 a.m. on January 19, HYBE was trading at 355,000 won, up 18,500 won (5.50%) from the previous trading day.

On this day, iM Securities stated that it has raised its estimates for earnings per share (EPS) and valuation (the stock price relative to corporate value) for HYBE, maintaining its 'buy' investment opinion and increasing the target price from 400,000 won to 420,000 won. In particular, the company projected that HYBE's operating profit for this year will reach 529.1 billion won, a 950% increase compared to the previous year.

Hwang Ji-won, a researcher at iM Securities, said, "The BTS activity timeline has finally been clarified. Following the release of the new album on March 20, a large-scale world tour will resume, starting with Korea 49 days later." He emphasized, "A total of 79 performances have been announced for the 11 months through next March, and considering additional schedules in Japan, the Middle East, and other regions, it is reasonable to expect as many as 90 to 100 shows."

He added, "Even assuming 50,000 people per show, this would amount to over 4.5 million attendees, making it the largest in history. Since a 360-degree stage will be used, the actual number of spectators could be even higher." He estimated, "Total ticket sales are projected to reach approximately 1.3 trillion won, and merchandise (MD) sales are expected to be about 450 billion won."

Furthermore, Hwang noted, "In addition to the leverage effect from BTS announcing a large-scale tour that exceeds market expectations, the full-fledged contribution of Cat's Eye to earnings from the second half of the year and the rapid monetization of Cortis will serve as long-term growth drivers."