HYBE

[Alpha Biz= Reporter Kim Sangjin] On July 8th, Korea Investment & Securities lowered HYBE's target stock price from 315,000 KRW to 290,000 KRW.

Korea Investment & Securities stated, "The downgrade is due to a downward revision of profit estimates stemming from increased costs in the second quarter. Currently, there is significant uncertainty regarding the stock price, and it is expected that consensus estimates will be revised downward before the Q2 earnings announcement. Additionally, there is a potential for renewed conflicts involving CEO Min Hee-jin."

The firm further explained, "HYBE's Q2 sales are projected to be 713.3 billion KRW, with an operating profit of 74.2 billion KRW, which is 21% below consensus. The increase in costs compared to heightened expectations is expected to be substantial. Significant expenses were incurred for the debut of the global girl group 'CAT’S EYE,' and marketing costs for the publishing game 'Become a Star 2' are anticipated to greatly exceed initial estimates."

However, Korea Investment & Securities also noted, "In the fourth quarter, a solo album from BTS member Jin is expected. Next year, a full BTS album is anticipated, reflecting the activities of all artists."

 

 

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