This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

방탄소년단

[Alpha Biz=(Chicago) Reporter Kim Jisun] Despite the absence of the group BTS (BTS), HYBE's stock price is clearly on the rise. The popularity of "NewJeans," a girl group affiliated with HYBE-affiliated label Adoor, led to a rise in stock prices. 

 

Investors are applauding the rise in stock prices due to a series of favorable factors for entertainment stock HYBE, but they are expressing regret in that there is no dividend. HYBE is also a company that has never paid dividends or incinerated treasury stocks since its listing.

On the 2nd, HYBE closed at 187,900 won, down 1,600 won (0.84%) from the previous trading day. The stock price rose 75% from its low point in October last year.

Stock industry sources also predict that earnings in the fourth quarter of last year fall slightly below consensus due to sluggish production costs of new groups, but earnings estimates will rise this year due to the growth of new artists. 

 

Meritz Securities raised its HYBE target price from 170,000 won to 210,000 won. Hi Investment & Securities also raised its target price from 188,000 won to 230,000 won. Kyobo Securities, Hanwha Investment & Securities, and IBK Investment & Securities also raised their Hybe target prices.

Jung Ji-soo, a researcher at Meritz Securities, said, "Despite the BTS gap, a new IP 3 team will be added to the existing intellectual property (IP), of which the local girl group project in the U.S. is expected to be released through the media in the second quarter," adding, "The appropriate stock price has been raised by 23.5% by changing earnings estimates."

It is the performance of the girl group NewJeans that overshadowed concerns over worsening profitability due to the BTS gap this year. It is known that BTS accounts for about 65% of HYBE sales. 

 

However, even when a sales gap is inevitable due to the member's enlistment, stock prices are on the contrary. Stock prices also jumped more than 9 percent in a month. NewJeans's representative song, "Ditto," has recently entered the Billboard Hot 100 chart, showing the fastest growth among fourth-generation K-pop artists. 

 

In addition, the title track "OMG" with the same name of the first single "OMG," released by NewJeans on the 2nd, ranked 79th in the Hot 100 on February 4.