Kiwoom Securities has lowered its target price for Hive to 280,000 won, reflecting a deterioration in supply and demand. However, the firm maintained its 'buy' rating, citing increasing visibility for BTS's full group activities and the growth potential of localized overseas groups like Cat's Eye.
In a report on November 4, analyst Lim Soo-jin stated, "The profit contribution from lower-tier intellectual properties (IPs) is expected to expand significantly starting in 2027, indicating an active period for increasing investment."
Lim noted, "BTS has already mentioned several times its encore performances and upcoming tours for next year, and during this earnings announcement, it confirmed preparations for both group and solo albums following the world tour. We believe the concerns regarding activity visibility have been alleviated, with a high likelihood of continued activities until 2028."
The growth potential of localized overseas groups was also positively assessed. Analysts indicated that Cat's Eye and Ant Team have demonstrated their potential in international markets. Notably, Lim remarked, "Cat's Eye has over 300,000 ticket requests for its arena-level tour in North America, and we expect growth to stadium-level shows next year and the year after."
Hive's third-quarter results for this year also significantly exceeded market expectations. Consolidated revenue reached 1.5 trillion won, a 109.8% increase compared to the same period last year, while operating profit turned positive at 188.5 billion won, with an operating margin of 12.4%.
By business segment, concert revenue surged to 726.8 billion won, a 196.7% increase year-on-year, driven by BTS's record attendance of 70,000 per show. Album sales rose to 282.8 billion won, a 49.0% increase, as existing albums continued to sell well, surpassing expectations despite a decrease in the number of releases, with Cortis's cumulative sales exceeding 4 million copies.
* This article has been translated by AI.
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