Samsung Securities: HYBE's Q2 Operating Profit to Surge 130% on BTS, New Artists, and Merchandise

HYBE, the entertainment agency behind the global sensation BTS, is poised for a significant surge in its second-quarter financial performance, according to a report by Samsung Securities. The company is expected to surpass market expectations, with operating profit projected to increase by a substantial 130% year-on-year. This optimistic outlook is attributed to a confluence of factors, including the highly anticipated return of BTS's group activities and the burgeoning success of HYBE's newer artist rosters.

“

HYBE is expected to exceed market expectations for its second-quarter operating profit, driven by the resumption of BTS activities and the growth of new artists.

The growth trajectory is anticipated to be broad-based, encompassing key business segments such as live performances, album sales, and merchandise. This diversified revenue stream is expected to contribute to a doubling of operating profit compared to the previous year. The report highlights the synergistic effect of established acts like BTS and the promising trajectory of emerging talent, creating a robust and resilient business model for HYBE.

“

Concert, album, and merchandise sales are all growing evenly, and operating profit is expected to more than double year-on-year.

Samsung Securities analyst Min-ha Choi has reiterated a 'buy' recommendation for HYBE's stock, while adjusting the target price. The firm's previous target of 380,000 won has been revised to 330,000 won. This adjustment, despite the positive earnings forecast, suggests a recalibration of valuation metrics or a consideration of broader market factors. Nevertheless, the core recommendation underscores a continued belief in HYBE's long-term growth potential and its strong position within the K-pop industry.

“

Min-ha Choi, a Samsung Securities researcher, maintained a 'buy' investment opinion on HYBE and lowered the target price from 380,000 won to 330,000 won.