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Photo = HYBE |
[Alpha Biz= Paul Lee] Heungkuk Securities raised its target price for HYBE from 260,000 KRW to 280,000 KRW, citing expected revenue and profit growth this year due to the development of younger artists and individual activities of BTS members.
On the 10th, Heungkuk Securities stated, “The target price-earnings ratio (PER) remains the same as before, applying the company’s 2021 lower-end PER of 35 times to the projected 2025 earnings per share (EPS) based on BTS’s anticipated comeback.”
HYBE’s Q4 2023 revenue is estimated to have increased by 13% year-over-year to 687.4 billion KRW, while operating profit is expected to have decreased slightly by 0.1% to 8.1 billion KRW.
Heungkuk Securities noted, “Key artists were active in album and music releases during Q4, including Jin (BTS), SEVENTEEN, ENHYPEN, TXT, TWS, and ILLIT. In the performance sector, SEVENTEEN, ENHYPEN, and TXT’s global tours drove growth.”
The firm added, “The steady growth of younger artists continues, and the adoption of Weverse’s membership service is expected to contribute to revenue.”
Heungkuk Securities also highlighted that with Jimin and Jungkook set to complete their military service in June, all BTS members will have finished their enlistment. The firm stated, “Expectations for a full-group comeback will persist. It will be important to watch for any communication regarding BTS members’ 2025 activity plans in the upcoming earnings report.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
