HYBE failed to fill BTS’s gap “Target stock price downgraded in the securities market”

On July 5th, DAOL Financial Group adjusted HYBE’s target stock price from 280,000 won to 260,000 won, citing a decrease in album sales and anticipated second-quarter performance falling short of expectations.

The report, analyzed by DAOL Financial Group’s researcher Kim Hye-young, attributed the adjustment to a general decline in sales despite album releases by major IPs like SEVENTEEN, NewJeans and TXT. Additionally, HYBE IM’s publishing of “ASTRA: Knights of Veda” also performed below expectations.

Researcher Kim Hye-young noted, “Even during BTS’s military hiatus, solo albums have been released, showing strong performance stability contrary to traditional industry practices. This year marks a generational shift in IPs, and operating profit is expected to slightly decrease compared to last year.”

As a result, HYBE’s second-quarter performance is expected to fall short of market consensus. The total operating profit for this year is projected to be 271.2 billion won, an 8% decrease from last year’s 295.9 billion won.

Kim Hye-young predicted that HYBE’s stock price would begin to rise starting from the fourth quarter. She maintained a “buy” investment opinion, stating, “BTS’s Jin completed his military service in June, and it is anticipated that an album will be released in the fourth quarter. From this point onward, expectations for the full-group activities could lead to a potential increase in stock prices.”