(Photo: HYBE)

 

[Alpha Biz= Reporter Kim Sangjin] KB Securities Lowers Target Price for HYBE to 270,000 KRW, Maintains 'Buy' Rating

In a report on the 18th, KB Securities stated, 'While 2024 is expected to see a decrease in annual profits due to BTS's hiatus and expansion of business areas, 2025 is anticipated to maintain growth momentum with the full comeback of BTS, increased contributions from newer artists, and the commercialization of deficit subsidiaries through full-scale business development.'

Regarding the target price adjustment, KB Securities explained, 'The downward revision of Q2 performance is due to costs associated with the full-scale launch of HYBE IM's gaming business and the global debut of the new group KATSEYE. Additionally, increased expenses from expanding the gaming business and realistic adjustments to the activity plans of artists from different labels led to a downward revision of the operating profit estimates for this year and next. However, the full-scale activities of BTS and the commercialization of HYBE IM and Weverse Company next year are expected to support maintaining the 'Buy' rating.'

KB Securities predicted that HYBE's Q2 sales will increase by 5.7% year-on-year to 656.3 billion KRW, while operating profit will decrease by 30.6% to 56.4 billion KRW, falling short of market consensus. The strong sales of Seventeen's best album and NewJeans' Korean and Japanese single albums, which have a high ASP, are expected to boost album sales in Q2.

 

 

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