sabiz

Meritz Securities forecasted that HYBE's consolidated revenue for the fourth quarter of last year would increase by 9.03% year-on-year to 663.3 billion KRW, while operating profit would decrease by 6.1% to 83.7 billion KRW. This aligns with the market consensus of 85.8 billion KRW in operating profit.

Kim Min-young, an analyst at Meritz Securities, stated, "Major artists like BTS, Jin, TXT, Seventeen, I-LAND, and T.O. have made comebacks, and the world tours of Seventeen, ENHYPEN, and TXT will be reflected."

As individual artists' drawing power strengthens, the total audience is expected to reach a record-high of approximately 970,000, despite BTS's absence during the quarter.

However, due to increased incentives from the strong performance, the operating profit is expected to align with the market’s lowered expectations.

Kim emphasized, "This year will see all BTS members returning from military service," adding, "Meanwhile, younger artists have achieved rapid growth." According to Meritz Securities, the combined daily streaming for the fourth quarter last year reached 12.6 billion, showing a steady increase in global exposure and fandom for individual intellectual properties (IPs), including younger artists.

Kim further mentioned, "In February, BTS’s J-Hope will have a solo tour, and in April, Seventeen and ENHYPEN will perform at global festivals." He also highlighted that the monetization phase for younger artists, led by BOYNEXTDOOR, will start with solo concerts, and three new boy groups are expected to debut.

He concluded by stating that, based on changes in performance estimates, the target price has been raised, and he maintains his "Top Pick" recommendation for HYBE within the industry.