BTS’ enlistment decision… HYBE, will stock price rebound?

As BTS decided to enlist sequentially, starting with the eldest member Jin, attention is focused on whether HYBE’s stock price, which has been declining for days, will rebound.

On Oct 17th, HYBE announced, Jin will cancel the request to delay enlistment in late October and follow the enlistment procedure of Military Manpower Administration.”

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Jin was born in 1992 and is 30 years old this year. According to the revised Military Service Act in 2020, his enlistment has been postponed until the end of this year after being recommended by the Minister of Culture, Sports and Tourism. Other members also plan to carry out their military service sequentially based on their own individual plans, putting an end to a years-long debate on whether BTS deserved exemptions from mandatory service.

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After this decision, HYBE’s stock price fluctuated. However, contrary to expectations, the stock price showed an upward trend. On Oct 18th, HYBE’s stock price closed at 120,500 won, up 4.78% (5,500 won) from the previous trading day’s closing price (115,000 won). It soared to 124,000 won at one point during the day, recording a 7.8% increase. It also rose to 125,000 won on Oct 19th. Of course, it closed with a slight decline, but compared to the sluggish trend during the past time, it is continuing to do well.

Before Jin’s enlistment decision, HYBE’s stock price was at the end of its rope. The appearance of rising to an all-time high of 421,500 won in November last year was nowhere to be seen, and it plunged more than 70% compared to its peak. On Oct 13th, it recorded 107,000 won during the day, the lowest price after listing. This caused a slump due to the suspension of BTS’ group activities and prolonged problems related to enlistment.

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However, HYBE’s stock price laughed after a long time as the issue of BTS’ enlistment, which was the main culprit of stock price volatility, was concretized. The stock market interpreted that while lowering the target stock price for HYBE in consideration of BTS’ vacancy, resolving uncertainties by ending the military issue, which has been a hot topic for years, was a positive factor.

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HYBE also came up with future countermeasures to dispel investors’ concerns over the announcement of BTS’ military service plan. They presented a growth strategy to effectively minimize sales damage caused by the “militatus (military service + hiatus)” of BTS, which has accounted for 60% of sales so far. In the short term, individual activities of some members are scheduled until the first half of next year. From a mid- to long-term perspective, the company intends to fill BTS’ vacancy by producing steady music and content through a multi-label strategy.

BTS Jin The Astronaut

Meanwhile, Jin, who is about to join the military, will release his first solo single “The Astronaut” on Oct 28th. As Jin made it with affection for BTS’ fandom ARMY, it is expected that the song will be like a gift to fans.

Source: daum

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