HYBE's value in the market is only growing day by day!
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HYBE's Market Value Surpasses 10 Trillion Won, Foreign Investors Snags Shares
According to reports on June 15, KST, HYBE Corporation, formerly Big Hit Entertainment and home to K-pop superstars BTS, TXT, and ENHYPEN, had surpassed a market valuation of 10 trillion won ($8.95 billion USD) for the first time.
On Monday, June 14, HYBE closed at 282,000 ($252 USD) won per share on South Korea's index of common stocks on the Stock Market Division, the Korea Composite Stock Price Index (KOSPI), allowing the company to surpass 10 trillion won ($8.95 billion USD).
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HYBE continued its growth on Tuesday, June 15, seeing a rise of 2.48 percent, making its current price per share at 289,000 won ($258 USD) at the time of KOSPI's close. In addition, KOSPI also saw a 0.20 percent increase on the same day.
It seems that with HYBE's growing value, both institutional and foreign investors are battling to snag some of HYBE's shares. Institutional investors, which are organizations that pool funds of numerous investors, have remained as HYBE's net buyers for eight straight trading days until KOSPI's close on June 15. Not only that, but foreign ownership of HYBE also saw an increase to 11.25 percent on the same day. Previously, at the time of HYBE's market debut in October of last year, foreign investors had a combined 3.62 percent in shares.
HYBE, who went from being a small entertainment company to being named as one of the "Big 4" alongside SM Entertainment, JYP Entertainment, and YG Entertainment, went public in the market on October 15, 2020, with a share price closing at 258,000 won ($230 USD) on its first day in the market. However, the price fell to as low as 142,000 won ($127 USD) by October 30.
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According to reports, analysts have attributed HYBE's growth in the market thanks to BTS' newly released digital single, "Butter," which has topped Billboard's Hot 100 chart in its third week in a row, breaking the group's previous record of placing No.1 for two weeks straight.
Hana Financial Investment suggested HYBE's future stock price to be 360,000 won ($322 USD), and SK Securities at 350,000 won ($313 USD), while local brokerages put a target price of above 350,000 won ($313 USD).
HYBE Continues to See Increase in Revenue
Lee Gi Hoon, an analyst at Hana Financial Investment predicted that once BTS resumes their concert tours, HYBE could potentially achieve a quarterly operating profit of 100 billion won ($89 million USD) through both offline and online events. Lee Gi Hoon's prediction is based on the revenue of BTS' previous online events.
READ ALSO: HYBE Projected to Gain a Quarterly Profit of 100 Billion Won When Offline Concerts Begin
In the last quarter of 2020, BTS held a two-day online concert that was attended by over 990,000 fans worldwide, making HYBE attain a record of 80.9 billion won ($72 million USD) in revenue, an increase from 2019, which saw a record of 78 billion won ($69 million USD).
This year, BTS' held a two-day online concert in celebration of the group's eighth anniversary since their debut, which took place on June 13 and 14. The concert, "BTS MUSTER 2021: Sowoozoo," had garnered more than 1.33 million viewers worldwide, having revenue that is estimated to reach as high as 79.1 billion won ($70 million USD).
Lee Hyun Ji, an analyst at Eugene Investment and Securities, said that BTS could have at least two more online concerts by the second half of 2021, considering that their concert viewers have been continuously on the rise, and HYBE can easily achieve at least 20 billion won ($17 million USD) in revenue through fan meeting ticket sales alone.
READ ALSO: HYBE Reveals Sales and Profit for First Quarter of 2021 and Plans for Ithaca Holdings
HYBE's revenue also saw an increase of 29.9 percent to 178.3 billion won ($159 million USD) in the first quarter as compared to a year ago. In addition, its operating profit of 21.7 billion won ($19 million USD) also saw an increase of 9 percent from 2020.
Meanwhile, HYBE had acquired a 100 percent stake in Scooter Braun's Ithaca Holdings, home to pop artists Ariana Grande, Justin Bieber, Demi Lovato, and J Balvin, for 1.18 trillion won ($1 billion USD) earlier this year.
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Written by Robyn Joan
