Stock price of HYBE increases after announcement of BTS' enlistment..."Uncertainty resolved"

연합뉴스 / 2022-10-18 16:56:33

▲This photo, provided by Big Hit, shows BTS. (PHOTO NOT FOR SALE) (Yonhap)

SEOUL, Oct. 18 (Yonhap) -- Stock price of HYBE increased despite the news of BTS's enlistment on Tuesday. The market believes that ease of uncertainty regarding their enlistment, which has been impacting its stock price, led to such phenomena.

According to the security firm industries, HYBE closed its deal at 120,500 won, up 4.78% from that of previous day. The price has risen up to 124,000 won at certain time of the same day.

BTS, on the previous day, has announced that they will join the army in order starting with the oldest member Jin.

Enlistment of Jin,who is now 30 years old, was delayed to the end of this year after he received recommendation to defer enlistment by minster of Culture, Sports and Tourism, according to the revised military service law. Jin will cancel the draft deferment and follow the procedures for enlistment.

BTS will most likely be able to begin its all-member activities in 2025.

Financial district positively evaluated the part in which uncertainty dispensed while target stock price of HYBE has been lowered.

Securities firms such as Yuanta Securities (252,000 → 210,000 won), Samsung Securities (210,000 → 178,000 won), Eugene Investment & Securities (240,000 → 200,000 won), Shinhan Investment & Securities (220,000 → 180,000 won), etc. lowered the target price of HYBE.

Choi Min-ha, a researcher at Samsung Securities, said, "We have lowered target price by moving the valuation point to next year, which is when BTS will not be actively working as the main power," but praised the fact that "main culprit of stock variability, uncertainty, has been cleared up."

Yuanta Securities researcher Lee Hye-In said, "Date of BTS' enlistment and uncertainty of their activities, which were the reasons for the fall in stock price, has been removed," adding, "Performance of next year and 2024 has become pretty visible, and performance of next year has more potential than downside risks with the growth of other artists."

Shinhan Investment & Securities said, "Uncertainty that has been suppressing the stock price over the year has been resolved," and have predicted that "Short-term low of the leading entertainment stock market will have a positive impact on the entertainment industry, which has been oversold compared to fundamentals."

(This article is translated from Korean to English by Jiwon Woo.)

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