"HYBE’s Growth Rests on Two Pillars—BTS and Newer Artist IP; Second-Half Activities Expected"

[Financial News] LS Securities said HYBE is seeing rapid growth not only from BTS but also from newer intellectual properties (IPs), and expects performances and other activities in the second half of the year to contribute to revenue. It maintained its “Buy” rating and target price of 300,000 won.
Park Seong-ho, an analyst at LS Securities, stated, "HYBE’s consolidated revenue this year is projected to reach 5.0477 trillion won, while operating profit is expected to come to 308.9 billion won, representing year-on-year increases of 90.5% and 526.4%, respectively."
The forecast is based on the confirmed strong revenue contribution from BTS performances in the second quarter and expectations that future live events will generate more than 100 billion won in revenue per quarter.
The potential of newer artist IP is also receiving particularly high marks. Park noted, "It is also necessary to pay attention to the rapid growth of newer artist IP and the platform business centered on Weverse," adding, "HYBE owns multiple artist IPs as well as a global fan platform, giving it significant potential to expand its business into areas such as content, characters and artificial intelligence (AI)."
He added, "CORTIS has shown rapidly rising recognition among newer acts by conducting a 14-date tour in North America and Japan since July. KATSEYE is also preparing for a North American and European tour that is more than twice the size of its previous tour. The debut of the new group ‘TUIDE’ in the second half of the year will add further momentum," and continued, "Platform revenue is also stabilizing as the number of Weverse users increases, raising expectations for business diversification using HYBE’s IP in the future."
[email protected] Lim Sang-hyeok Reporter