[Edaily Reporter Hyera Lee ] On the 20th, KIWOOM Securities projected that HYBE(352820)would post record-high second-quarter earnings, driven by the resumption of BTS’s world tour and the success of rookie group Cortice. However, reflecting a valuation adjustment in the entertainment sector, the firm lowered its target price to 330,000 won.

In a report released that day, KIWOOM Securities analyst Lim Su-jin stated, “Second-quarter earnings are expected to reach an all-time high in line with market expectations, driven by the resumption of BTS’s large-scale world tour and the explosive growth of rookie group Cortice.” She added, “Given the strong sales of concert merchandise, an earnings surprise is also entirely possible.”
KIWOOM Securities projected that HYBE’s second-quarter consolidated revenue would reach 1.2879 trillion won—an 82.5% increase year-over-year—and operating profit would rise 127.6% to 149.9 billion won, in line with market consensus.
Revenue from the concert division is projected to reach 500.6 billion won, a 165% increase year-over-year. Analyst Lim noted, “Of the 2.38 million total concert attendees in the second quarter, BTS accounted for 1.43 million, driving revenue growth.”
Music album sales were estimated to increase by 38.6% to 316.7 billion won. He noted, “Cortice is expected to record initial sales of 2.4 million copies and cumulative sales of 3 million copies,” adding, “Tours is also projected to sell 1.11 million copies, indicating that the growth momentum of relatively new artists will continue.”
Merchandise sales are projected to reach 326.2 billion won, a 113% increase year-over-year, driven by expanded sales of BTS tour-related merchandise. Analyst Lim explained, “The strategy of securing sufficient production volumes to prevent sell-outs will lead to high demand,” adding, “Improvements to the merchandise distribution network and the opening of the company’s flagship merchandise store are also expected to contribute to improved profitability.”
He explained that the downward revision of the target price was due to a recent concentration of supply and demand in certain sectors, such as semiconductors.
However, Analyst Lim assessed, “The pace at which our flagship artists are rising to the next level is accelerating, so the market’s concerns about fundamentals are excessive,” adding, “Considering the visibility of mid- to long-term growth, it is time to consider increasing one’s position in the stock.”
He added, “Cortice is maintaining an exceptional growth trajectory for a group in its first year since debut, and with the expansion of the Cat’s Eye World Tour in the second half of the year and the debut of new artists, medium- to long-term earnings momentum is expected to continue.”