Yuanta Securities Korea on the 19th said HYBE's early-stage intellectual property (IP) is growing quickly and is expected to be monetized. The firm set a target price of 450,000 won and a "buy" rating. HYBE's closing price in the previous trading day was 367,500 won.
HYBE's full-year revenue is estimated at 391.94 billion won and operating profit at 493.3 billion won. That would be up 47.9% and 889%, respectively, from a year earlier. Lee Hwan-uk, an analyst at Yuanta Securities Korea, said, "With the activity effect of global mega IP BTS and the rapid monetization of fast-growing early-stage IPs expected, we anticipate a significant profit base effect reflecting last year's one-off expenses, including those from the North America unit."
By segment, album and digital track sales volumes are projected at around 32 million units. Including strong sales of BTS's new release, the album sales of ENHYPEN and Cortiz, whose global fandoms are steadily expanding, are expected to drive results.
The analyst explained, "For concerts, the number of tickets sold for the early-stage girl group KATSEYE's tour increased sharply, and diversified MD products are expected to improve results." The exchange rate effect may partly offset the slowdown in consumption.
The analyst said, "The listener base for rookie group Cortiz touched about 10 million with just one debut album," adding, "In line with the high-growth trend of rookie IPs such as Cortiz and Santos Bravos, valuation levels will move flexibly."