[Alpha Biz=(Chicago) Reporter Paul Lee] Meritz Securities analyzed on the 20th that Hybe's performance will increase this year due to diversification of IP. It maintained its investment opinion of 'buy' and raised its target price from 170,000 won to 210,000 won.
Consolidated sales in the fourth quarter of last year fell 5.2 percent year-on-year to 434.2 billion won and operating profit fell 31.1 percent over the same period to 50.9 billion won, Meritz Securities said. "It is expected to fall below the market expectation of 53.7 billion won."
Meritz Securities went on to say, "The number of concertgoers of ENHIPEN and TXT was small, and the profit of the performance was sluggish due to the hosting of BTS' free concert in Busan in October," adding, "The increase in production costs related to new groups that debuted in Japan in December is also the reason for the sluggish profits."
A total of three to four albums, including TXT and Seventeen unit albums, will be reflected in the first quarter of this year, and the results of ENHYPEN and TXT World Tour will be recognized in the second quarter, Meritz Securities said. "Weverse will introduce a subscription model from the second quarter."
Meritz Securities estimated Hybe's consolidated sales this year to be 814.4 billion won, up 8.2 percent from a year earlier, and operating profit to 227.3 billion won, down 4.0 percent over the same period.
NewJeans' Dito has recently entered the Billboard Top 100 chart, showing the fastest growth among fourth-generation K-pop artists, he said. "This year, a new IP 3 team will be added despite the absence of BTS."
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
