Samsung Securities said on the 9th that it expects HYBE's performance in the first quarter of this year to fall below market expectations, and noted that attention should be focused on growth momentum, such as activities after all BTS members complete their military service, rather than short-term performance. It maintained a target share price of 300,000 won and a 'buy' investment opinion. The closing price of HYBE on the previous trading day was 230,500 won.
Samsung Securities anticipated that HYBE's consolidated sales and operating profit for the first quarter of this year would record 438.9 billion won and 19.7 billion won, respectively, marking an increase of 21.6% and 36.9% year-on-year. However, it is expected that operating profit will fall short of the estimate of 53.1 billion won. The new releases included the Seventeen unit 'BSS', 'Hoshi x Woozi', and the mini album of LE SSERAFIM, while J-Hope and Boynextdoor, and ILLIT released music through digital singles.
Choi Min-ha, a researcher at Samsung Securities, explained, "Compared to our previous estimates, we slightly lowered our sales estimates to reflect the performance of albums and music, and adjusted the cost of sales upward considering the increased proportion of concert revenue."
The new album release of Seventeen scheduled for May is expected to lead to active album and music activities of major artists and world tours. Sales from merchandise planning (MD) following tour expansion are also expected to improve.
Domestic and international labels are also steadily expanding their businesses through artist expansion. Research Institute Choi stated, "Recently, it announced the establishment of HYBE America x AU in the U.S., and a Big Hit Music boy group is set to debut in the country within this year. A seven-member boy group will also be unveiled by Japan's YX Labels," adding, "Additionally, a Latin band is preparing to debut in the Latin region, indicating plans for regional and genre expansion."
He continued, "Above all, with all BTS members scheduled to complete their military service in June this year, expectations for activities and active user metrics (MAU) on Weverse are expected to rise together, making it a significant point to focus on clear growth momentum."