LS Securities assessed on July 8 that HYBE's stock price has undergone excessive adjustments due to recent deterioration in investor sentiment. As a result, the firm has lowered its target price from 380,000 won to 350,000 won while maintaining a 'buy' rating.
Park Seong-ho, a researcher at LS Securities, projected that HYBE's consolidated revenue for the second quarter will reach 1.1672 trillion won, a 65.4% increase compared to the same period last year, with operating profit expected to rise by 113.1% to 140.4 billion won.
Park noted, "The second quarter is when the effects of BTS's comeback will be fully reflected in the consolidated results," adding that the concert and merchandise (MD) businesses will drive performance improvements.
The concert business is expected to grow by approximately 99% year-on-year, bolstered by 24 BTS concerts and an expansion of performances in Japan, the United States, and Europe, which will increase the average ticket price (ATP). Additionally, the depreciation of the won in the first half of this year is seen as a positive factor. Performances by SEVENTEEN, &TEAM, and TOMORROW X TOGETHER (TXT) are also anticipated to contribute to the results.
Furthermore, the MD and music industries are expected to continue their positive trends. Park stated, "BTS's LP sales in the U.S., the success of rookie group Cortis's new release, and the expansion of 'Merch Band' sales combining albums and goods will support performance. Additionally, tour MD, pop-up MD, and collaborative product sales are expected to maintain a solid flow." However, he explained that due to the increase in pre-order sales, some revenue will be recognized in the second half of the year.
The growth of new artists following BTS is also viewed positively. Park remarked, "Cortis has secured a North American tour less than a year after debuting, indicating rapid expansion of its fandom," and added, "Cat's Eye is also continuing its growth in the North American market, with its new song re-entering the Billboard Hot 100."
* This article has been translated by AI.
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