[Edaily Reporter Kwon Oh Seok ] HYBE(352820)’s stock price is showing strength in early trading. It appears that buying interest is surging on the back of positive outlooks from the securities industry.

According to MP Doctor on the 7th, HYBE is trading at 229,000 won as of 9:27 a.m., up 6.51% from the previous trading day.
Earlier today, NH INVESTMENT & SECURITIES released a report predicting that HYBE’s second-quarter earnings would exceed consensus estimates. The report noted that investors should focus on the medium- to long-term growth drivers stemming from the visible high growth of Cortis and the success of music releases in Western markets, particularly those centered on BTS and CAT’S EYE. However, the firm lowered its target price from 360,000 won to 330,000 won.
Lee Hwa-jeong, an analyst at NH INVESTMENT & SECURITIES, commented, “Concerns about profitability will likely be alleviated as the second-quarter results reaffirm that the rise in artist revenue-sharing ratios can be offset by economies of scale.” She added, “The likelihood of a comeback by NewJeans following their hiatus is also increasing. Given the abundance of factors supporting a revaluation, this is a valid period for ‘bottom fishing.’” “Bottom fishing” refers to the strategy of buying stocks at their lowest prices after they have fallen to the bottom of their range.
The analyst projected that second-quarter consolidated revenue would reach 1.1 trillion won (up 53% year-over-year) and operating profit 162.4 billion won (up 147%), both exceeding market consensus. The analyst added, “This is the period when BTS’s concert, merchandise, and music sales will be fully reflected in the results,” noting, “It will be confirmed that the profitability pressure resulting from the rise in the artist revenue-sharing ratio—which had been a source of market concern—can be offset by scale expansion and higher unit prices.”