Hana Securities “HYBE and JYP are top preferences among Big 4, expect record-breaking operating profits”

This decision stems from the anticipation of the performance of artists debuting in the first half of the year and the expected record-breaking operating profit due to the expansion of overseas concerts.

Researcher Lee Ki-hoon stated, “Currently, the four major entertainment companies are facing inevitable derating (stock price decline) due to the most intuitive indicator, which is the decline in album sales.” However, he also explained, “Before the summer Olympics in July~August, major artists are expected to make comebacks. Accordingly, the combined profit of the four major entertainment companies is expected to be around 80 billion won for the first quarter and 220 billion won for the second quarter.”

Researcher Lee further forecasted that HYBE and JYP Entertainment would achieve their highest-ever operating profits in the first half of the year. He said, “HYBE is expecting the debut of KATSEYE this summer and the release of a Netflix documentary, along with additional stock price increases anticipated with the release of ‘Be the Star 2’ in April. This year’s operating profit is also expected to increase by at least around 30 billion won compared to last year.“

He continued, “JYP Entertainment saw a significant portion of its Japan tour sales from the fourth quarter of last year deferred to the first quarter of this year. This year’s tours are also expected to expand compared to last year, with tour sizes nearing close to 700,000 people already from the first half of the year.”

He concluded, “However, for YG Entertainment, the successful debut album performance of ‘BABYMONSTER’ is crucial in resolving its dependence on IPs such as BLACKPINK. We maintain HYBE and JYP Entertainment as the top preferences in the industry.”