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| ▲This photo shows, a sign of HYBE (Yonhap) |
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| ▲This photo, provided by BIGHIT Music, shows, BTS. (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL, August 4 (Yonhap) -- Securities firms lowered their expected stock price of HYBE despite of it hitting the highest profit during the third quarter on Thursday.
Lack of South Korean super star BTS, newly introduced businesses which leads to lack of operation profit was the cause of rearrangement.
According to the security firm industries, rearrangement happened within KB Securities, from 350 thousand won to 280 thousand won, IBK Securities, 380 thousand won to 240 thousand won, KF Securities, from 300 thousand won to 270 thousand won and more.
HYBE sent out a statement disclosing its operation profit of second quarter which was 83.3 billion won which is 215.3 percent increase compared to the same quarter last year.
Totals sales was recorded to be over 512.2 billion won, which showed 83.8 percent increase compared to last year, and net profit was recorded 93 billion won which showed 359.3 percent increase.
Throughout the statement, HYBE announced that they have achieved the highest Total Sales, and Operation Profit compare to every quarter.
Lee Hwan-wook, a researcher of IBK Securities stated “We have rearranged the annual performance estimate due to the vacancy of super star BTS.”
Moreover, Park Hyung-min, a researcher at KF Securities stated “K-pop boy group BTS did not completely stop their activities, possibility of individual activities and solo concerts are still open. However, there is a possibility of Jin of BTS getting enlisted cannot be overruled therefore our company had to take a conservative action.”
Researcher Lee Sun-hwa from KB Securities, described their rearrangement by stating “Due to the newly introduced line of K-pop artists, HYBE’s operation profit will decrease. That is why KB Securities have decreased HYBE’s rate of increase in operating profit growth from 24.4 percent to 14 percent.”
Most of the rearrangement reflects on BTS’ military complication.
KB Securities researcher Lee Sun-hwa expects “The plunge in profit and valuation multiplication due to enlistment of BTS members are overly populated among the stock price.” adding “Six of the groups debuting between 2022 and 2023 will fill up the empty spot of BTS.”
Moreover, researcher Park Hyung-min showed amicable stance on the growth of HYBE’s different artists, expected groups to debut within 2022 and 2023, and newly introduced businesses while stating “Despite of the uncertain state cause by the complication of the enlistment of K-pop giant BTS, it seems like it has already impacted the stock price.”
However the stock market closed with a single stock of HYBE at 173 thousand won which is 1.76 percent higher than the price on Wednesday.
(This article is translated from Korean to English by Joonha Yoo.)
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