On the 5th, IBK Securities analyzed that HYBE's KATSEYE succeeded in a multi-genre strategy beyond K-pop, and that the localization intellectual property (IP) of entertainment companies could yield results successively. It maintained the investment opinion of 'increase in holdings' for entertainment stocks.
Last month, the initial sales volume of four domestic entertainment companies was around 3.83 million copies, and total sales volume is expected to reach around 5 million copies. Four albums, including those from Boy Next Door, Stray Kids, Chanyeol's solo, and TWICE, were released, and Stray Kids' album achieved the first triple million seller of the year.
In terms of audio sources, the combined monthly Spotify listeners of four entertainment companies increased by 28.8% year-on-year to 258 million, setting a record since data aggregation began. The number of listeners for HYBE, JYP Entertainment, and YG Entertainment significantly increased, attributed to the success of K-pop Demon Hunters and KATSEYE, along with BLACKPINK's world tour. In terms of performances, in August, the four entertainment companies attracted an audience of 1.62 million, a dramatic increase of 80.2% compared to the previous year.
IBK Securities forecasted that the scale of next year's tours by entertainment companies and the success of additional IPs will determine stock price trends.
Researcher Kim Yoo-hyuk of IBK Securities noted that 'HYBE's global girl group KATSEYE surpassed 27 million monthly listeners on Spotify after just one year since their debut', and added, 'This level is similar to BLACKPINK and BTS, achieving the feat of simultaneously charting on the U.S. Billboard (45th), the U.K. Official Chart (53rd), and the Spotify Global Chart (23rd).'
Researcher Kim said, 'The tickets for the North American tour starting in November have sold out immediately upon opening, proving that HYBE has succeeded in its multi-home, multi-genre strategy.' HYBE plans to debut four localized IPs in North and South America starting in the second half of this year, so it is necessary to pay attention to whether similar achievements can be replicated.
Researcher Kim said, 'The success of KATSEYE is significant in that it has expanded the reachable market from K-pop, which has a market share of 10%, to other genres, and additional successes in localized IPs could serve as upward factors for multiples.'
He added, 'We should maintain an investment strategy that focuses on stocks with a high intensity of profit improvement until 2027' and presented HYBE as the preferred stock and SME and DearU as the secondary preferred stocks.