[Edaily Reporter Kim Hyung-il ] NH INVESTMENT & SECURITIES assessed that HYBE(352820)’s mid- to long-term growth drivers—including the rapid growth of Cortis’s fanbase and the expansion of global music sales centered on BTS and KATSEYE—are not yet fully reflected in the company’s market value. Accordingly, the firm raised its target price from 310,000 won to 330,000 won and maintained its “Buy (BUY)” investment rating.

On the 29th, Lee Hwa-jeong, an analyst at NH INVESTMENT & SECURITIES, stated, “Revenue growth driven by BTS’s concerts, merchandise (MD) sales, and the success of their music releases continues,” adding, “The upward trend in unit prices and demand across all revenue streams will serve as mid- to long-term growth drivers.”

HYBE recorded revenue of 1.4 trillion won and operating profit of 170.9 billion won in the second quarter of this year, marking year-over-year increases of 106% and 159%, respectively, and achieving an “earnings surprise” that exceeded market expectations. In particular, concert revenue reached a record high of 647.7 billion won, driven by higher ticket prices and increased ticket sales. The share of concert revenue in total revenue also reached 45%, significantly exceeding market expectations and driving overall growth.

The analyst explained, “Although concert revenue has a higher cost ratio compared to digital music or merchandise, its absolute contribution to profits remained robust thanks to overall revenue growth, even as the share of concert revenue expanded,” adding, “The increase in company-wide personnel expenses was largely due to the recognition of incentive provisions resulting from strong performance.”

He continued, “With the expansion of BTS’s concert and merchandise sales, coupled with the growth of the global music market and the expansion of Cortis’s fanbase, the company’s medium- to long-term growth trend is expected to continue,” adding, “The current stock price does not fully reflect this growth potential.”