DAOL Investment & Securities said on the 28th that expectations for BTS's album release next year and the start of a tour at the end of April will be reflected in HYBE's share price starting in December this year. It maintained a "Buy" investment opinion and set a target price of 420,000 won. HYBE's closing price in the previous session was 297,500 won.
Im Do-young, an analyst at DAOL Investment & Securities, said, "When the 'Map of the Soul' tour, which was canceled due to COVID-19, was planned, the schedule was announced three months before kickoff, so a tour schedule is expected to be announced in January," and analyzed, "From late December, that expectation could start to be reflected."
According to a Bloomberg report on the 26th of last month, the number of BTS tour performances next year is 65, of which more than 30 are scheduled in North America. DAOL Investment & Securities predicted that when combining the number of performances in North America and Europe, more than 37 shows will be held.
Im especially judged that the potential for earnings improvement is higher from the perspective of an increase in the average ticket price (ATP). Considering that recent tours by mega intellectual property (IP) wrap up at around 60 shows, in the case of BTS, which is assumed to do a stadium tour, the number of shows is projected to reach the low 70s at most.
BTS's North American ATP is expected to rise to $220 (about 320,000 won). The solo tour ATPs of J-Hope and Suga, whose demand is lower than the full group, have already recorded $198 (about 280,000 won) and $218 (about 310,000 won), respectively.
Im said, "Given that the minimum ticket price in Korea has also been raised, an accompanying ATP increase is expected in Asia as well," and added, "The share of North American shows, where ATP is higher, is large, and the won-dollar exchange rate is also favorable."
Sales growth driven by MD products centered on light sticks is also expected. Recently, HYBE has pursued a more aggressive MD sales strategy than in past tours, including diversifying MD items, operating popup stores in non-concert regions, and launching limited-edition MD tailored to the characteristics of fandoms by country.
Im judged, "Given the BTS fandom's stronger purchasing power compared to other IP, the effect of expanding MD sales is likely to be even more pronounced."