"Concert and Merchandise Revenue Hit Quarterly Records... HYBE Expands Its Growth Formula" [Click eStock]

Samsung Securities: "Stronger Earnings Capacity"

Samsung Securities said on Oct. 21 that it was maintaining its “Buy” rating on HYBE, the entertainment company home to BTS, SEVENTEEN and ENHYPEN, and setting a price target of 280,000 won. The target implies 48.5% upside from the previous day’s closing price of 188,500 won.

Choi Minha, an analyst at Samsung Securities, forecast that HYBE’s consolidated third-quarter revenue would come to 1.4746 trillion won and operating profit to 163.9 billion won, in line with the market consensus. Revenue is expected to rise 102.8% from a year earlier, while operating profit is forecast to return to the black from a loss of 42.2 billion won in the third quarter of last year.

A major contributor was BTS’ “ARIRANG” world tour, which held 24 shows across 11 cities in Europe and North America in the third quarter. Choi forecast that concert revenue of 715 billion won and merchandise and licensing revenue of 339.3 billion won would each reach record quarterly highs, as tours in Western markets—where ticket prices are relatively high and venues are larger—were concentrated in the period.

Album sales were also strong. Third-quarter album sales totaled about 9.15 million copies, nearly double the approximately 4.87 million sold a year earlier. ENHYPEN sold 2.29 million copies, CORTIS 1.81 million and &TEAM 1.39 million.

Exchange rates were a modest headwind. “With overseas sales accounting for more than 70% of revenue, the decline in the won-to-dollar exchange rate had an unfavorable effect,” Choi said. “However, strong concert results, along with robust sales of tour merchandise (MD), are likely to have more than offset the impact of exchange rates.”

Reflecting these results, Samsung Securities raised its estimate for HYBE’s 2026 operating profit by 18.1%, from 226.5 billion won to 267.4 billion won. It also lifted its 2027 operating profit estimate by 4.4%, from 428 billion won to 447 billion won.

HYBE is continuing to introduce new acts. The seven-member girl group Tyuideu debuted in the third quarter, and “Saint Satin,” a boy group formed through a reality program with members based in the United States, is set to launch in 2027. CORTIS held solo concerts in nine cities across North America and Asia, testing its reception in Western markets. Weverse, the fan communication platform, also broadened its revenue model through advertising and other offerings, returning to profitability.

“This is the time to focus on HYBE’s diversified growth drivers and stronger earnings capacity,” Choi said. “Its mid- to long-term growth strategy and expansion of its intellectual property (IP) portfolio will drive a revaluation of the company.”

This content was produced with the assistance of AI translation services.