Hybe Shares Surge on BTS Comeback Expectations, 622% Profit Jump Forecast

Hybe (352820.KS) shares are rising on expectations of a full BTS reunion, with securities analysts forecasting the company's operating profit could surge more than sixfold next year compared to this year.

As of 10:57 a.m. on January 10, Hybe was trading at 300,500 won, up 3.26% from the previous session, according to Korea Exchange data. The stock opened lower but later reached 310,000 won, showing strong momentum.

The share price gains are attributed to expectations for a comeback by Hybe's flagship group BTS next year. With BTS members completing their military service, the group is expected to reunite in full in March next year. This has also raised expectations for a resumption of world tours. Although Hybe recorded its first quarterly loss since listing in the third quarter, analysts suggest BTS could quickly offset those losses.

Securities analysts have assessed the BTS comeback as a positive catalyst. "Hybe's projected operating profit for next year is 514.9 billion won, up 622% year-on-year," said Hwang Ji-won, an analyst at iM Securities. "The operating profit margin is expected to recover to the 10% range."

Hwang added, "Considering the full-scale monetization of mid-to-junior tier artists, including overseas localized groups, we recommend increasing positions at current price levels," and "We continue to present this as our top pick in the sector." iM Securities maintained its target price of 400,000 won and "buy" rating for Hybe.

Hybe is also evaluated as having a solid lineup beyond BTS. Seventeen, TXT, and Enhypen continue their global expansion, while rookie groups Boynextdoor, TWS, and Illit are on growth trajectories. U.S. girl group Katseye reached No. 31 on the Billboard Hot 100 and No. 4 on the Billboard 200 in their second year since debut. Latin boy group Kurtis has also surpassed 1 million cumulative album sales with their debut album.