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Image: HYBE |
[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities expressed optimism on September 26 that the entertainment industry will shift to net growth starting in the fourth quarter.
In a report, NH Investment noted that the combined market capitalization of major firms—HYBE, YG Entertainment, SM Entertainment, and JYP Entertainment—has declined by 37% year-to-date. The report attributed the first-half revenue decline to heightened concerns about fundamentals and increased investor fatigue due to controversies involving Min Hee-jin.
However, the firm stated, "We expect a transition to net growth in performance from Q4 onwards, and the noise surrounding these controversies is becoming more predictable." They emphasized that it is now time to focus on factors that could reduce uncertainty.
NH Investment & Securities highlighted the recent sequential monetization of new artists and the successful expansion of existing artists’ recognition in Western markets, indicating that growth in both revenue and profitability is merely a matter of time.
They further noted, "The current decline in stock prices seems excessive when compared to the growth potential and valuation attractiveness," concluding that the investment appeal remains high.
NH Investment & Securities maintains a "Positive" outlook for the entertainment industry and has selected HYBE as its top pick.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
