by Girl group ‘New Jeans’Hive (352820)We are raising our target price. With evaluations that New Jeans are filling BTS’ “military hiatus,” the Hive goal is rising. New Jeans belong to Adore, a label under Hive.
According to the financial investment industry, on the 23rd, Meritz Securities and Hi Investment & Securities raised their target stock prices from 170,000 won to 210,000 won and from 192,000 won to 230,000 won, respectively, on the 20th. This month all Investment & Securities (030210)(150,000 won → 230,000 won), IBK Investment & Securities (180,000 won → 200,000 won), Hanwha Investment & Securities (003530)Securities companies such as (185,000 won → 205,000 won) also raised their target price for Hive.
The reason why the goals of securities companies have changed is because of the performance of New Jeans. New Jeans’ new song is making a hit at home and abroad. In particular, New Jeans is attracting attention by entering the Billboard main single chart ‘Hot 100’ within six months of her debut. According to the US Billboard Chart’s official SNS on the 18th, the pre-released song ‘Ditto’ of New Jeans’ single ‘OMG’ ranked 96th on the ‘Hot 100′. According to her agency Adoor, she is the first K-pop artist who debuted in September 2016 to be named on the Billboard Hot 100’.
Jung Ji-soo, a researcher at Meritz Securities, said, “New Jeans is showing the fastest growth among 4th generation K-pop artists.” Park Da-gym, a Hi Investment & Securities researcher, said, “The New Jeans, in their 5th month of the debut, achieved chart-in on the Hot 100 based on their tremendous streaming performance.”
It is reaping results so that it can be seen as a success based on the popularity of music.” Researcher Park said, “New Jeans is showing results of at least 3rd place in K-pop standards not only in Korea but also in major global music markets such as the US and Japan.” level is approaching.” He said, “New Jeans’ growth trend in the number of Spotify listeners compressively shows Blackpink’s growth pattern in the past.” high,” he said.
BTS members are overcoming situations where they need help to work individually by going into individual activities. In addition, not only existing artists such as Seventeen, Tomorrow by Together (TXT), Enhyphen, Le Seraphim, &TEAM but also American idol groups scheduled to debut in the second half of this year are expected to contribute to Hive’s performance improvement.
In addition, introducing a paid subscription model to Weverse is expected to boost performance. Hi, Investment & Securities estimated that adding the Weverse subscription model would increase its operating profit this year and next year by 27 billion won and 51.6 billion won, respectively.
However, some predict that Hive’s fourth quarter performance last year will fall below the consensus (average of securities firms’ forecasts). Meritz Securities estimated Hive’s consolidated operating profit for the fourth quarter to be 50.9 billion won, down 31.1% from last year.
It is expected to fall short of the consensus (53.8 billion won) by 5.39%. Researcher Jung said, “The scale of concert attendance for Hyphen and TXT was small, and profitability related to performances was generally sluggish due to BTS’ free concert in Busan in October.” It is also identified as the cause of the sluggish profitability in the fourth quarter.”
