Daol Investment & Securities commented on HYBE, stating, "Second-quarter performance is expected to fall short of market consensus."
Kim Minyoung
kimmy@alphabiz.co.kr | 2024-07-05 08:35:55
[Alpha Biz= Reporter Kim Minyoung] On July 5th, Daol Investment & Securities commented on HYBE, stating, "Second-quarter performance is expected to fall short of market consensus." They noted that despite the release of albums by major intellectual properties (IPs) such as SEVENTEEN, TXT, and NewJeans, reduced sales volumes led to a downward revision of profits. The investment opinion remains a "buy," but the target price has been lowered to 260,000 won.
Daol Investment & Securities analyzed that HYBE's consolidated sales for the second quarter are estimated to be 662.3 billion won, a 6.6% increase year-on-year, while operating profit is expected to decrease by 17.3% to 67.2 billion won.
They forecast album sales to increase by 8.9% to 267.7 billion won, reflecting 4.5 million units for SEVENTEEN, 2 million units for NewJeans, 1.9 million units for Tomorrow X Together (TXT), and 520,000 units for TWS. Music sales are estimated at 87.1 billion won.
Performance sales are projected to decrease by 13.8% to 135.7 billion won. However, merchandise (MD) and licensing sales are expected to increase by 21.3% to 135.7 billion won, with offline MD sales rising in tandem with increased concert activities.
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