HYBE’s target price down 44.2% due to lack of BTS’s full group activities next year 

It is predicted to be difficult for BTS to be active as a whole next year. 

Eugene Investment & Securities lowered the target price of HYBE by 44.2% from 430,000 won to 240,000 won in a report on July 26th.

BTS‘s full-group activities are expected to be difficult to be carried out in 2023, so HYBE’s estimated earnings for this year and next year are lowered.

Although the issues related to BTS’ military enlistment have not been clearly resolved, analysts say that even assuming they will be granted military exemption, group activities are still expected to be difficult in 2023, forcing HYBE’s estimated performance to decline.

However, Eugene Investment & Securities predicted, “Even if there are no BTS concerts, sales of performances worth at least 200 billion won are expected to be sufficient.”

HYBE’s sales in the second quarter are expected to increase by 71% year-on-year to 476.5 billion won, and operating profit is expected to increase by 195% to 82.6 billion won.

Furthermore, Eugene Investment & Securities evaluated, “SEVENTEEN, which recorded the highest first-week sales (2.07 million copies) after BTS, is expected to be active in the second half of this year and drive HYBE’s performance.”

In addition, HYBE will also benefit from the upcoming rookie girl group New Jeans of ADOR Label, which is scheduled to debut on August 1st, and the boy group debut under HYBE Japan in the 4th quarter.

Researcher Lee Hyun Ji said, “It is a shame that BTS will not be active as a whole, but it is necessary to pay attention to profitable artists who are hidden by BTS.”

Source: NewsCenter

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