Hive's Strong Q1 Performance Boosts Investor Confidence as Fandom Grows Beyond BTS, says Meritz Securities

Captured from the Hive website

Meritz Securities, a South Korean investment banking firm, has raised Hive's target stock price from 230,000 won to 270,000 won on the back of the entertainment company's expanding fandom and upcoming releases. Hive, the parent company of K-pop supergroup BTS, has been the focus of market attention as concerns about the group's upcoming military enlistment have subsided.

In a report published on April 24, Jeong, a researcher at Meritz Securities, predicted that Hive's consolidated first-quarter performance would exceed market expectations. The company's sales are estimated to be 477.5 billion won, up 67.6% from the previous year, with operating profit of 47.9 billion won, up 29.2% year-on-year.

Jeong noted that album sales had increased by 210.9% to KRW 201 billion, thanks to strong sales of singles and mini-albums by New Jeans, TXT, and Boo Seok-soon. However, performance sales decreased by 7% due to the delayed reflection of world tour performances by major artists in the second quarter, estimated at 57 billion won.

Despite the upcoming military enlistment of some BTS members, Jeong predicted continued growth in performances, merchandise sales, licensing, and advertising sales. The researcher cited Hive's new intellectual property (IP) 'Boy Next Door', which will debut next month, as well as upcoming comebacks by Seventeen, Le Seraphim, ENHYPEN, TEAM, BTS Suga's album, and New Genes expected in the third quarter.

Jeong also mentioned the girl group that will be active in the US, saying, "The market's high interest is expected to continue."

Sayart.net

BlueYIM, yimyoungseo1010@naver.com