MERITZ Securities analyzed on the 16th that HYBE has notable potential for stock price increases due to the full deployment of BTS and the ongoing growth of its younger fandom. It raised the target stock price from the previous 260,000 won to 280,000 won, maintaining its investment recommendation of 'buy.'
MERITZ Securities forecasted that HYBE's consolidated sales for the fourth quarter last year rose 9.03% year-on-year to 663.3 billion won, while operating profit is expected to decrease by 6.1% to 83.7 billion won. This aligns with the market consensus, which projects an operating profit of 85.8 billion won.
Kim Min-young, a researcher at MERITZ Securities, said, 'BTS, Jin, TXT, SEVENTEEN, ILY, and TOURS have all made significant comebacks, and the world tours of SEVENTEEN, ENHYPEN, and TXT will be reflected.'
Despite the absence of BTS, the strong appeal of individual artists is expected to result in the highest quarterly audience number ever, with approximately 970,000 attendees.
However, reflecting the increase in incentives due to strong performance in expenses, the operating profit is likely to align with the lowered market expectations.
Researcher Kim emphasized, 'This year is when all BTS members will be discharged,' noting that younger artists have achieved remarkable growth during this time. According to MERITZ Securities, the cumulative daily streaming count for the fourth quarter last year was 12.6 billion times, indicating a steady increase in global exposure and fandom for individual intellectual properties, including younger artists.
Researcher Kim said, 'In February, BTS's J-Hope will have a solo tour, and in April, SEVENTEEN and ENHYPEN are scheduled to perform at a global festival,' adding that 'the full-scale monetization period for younger artists will begin with BOYNEXTDOOR leading the way through solo concert engagements, and the debut of three new boy groups is also anticipated.'
He also noted, 'We are raising the appropriate stock price based on changes in performance estimates and maintaining our preference for the best stocks in the industry.'