Hybe (352820.KS): Above consensus 2Q, yet lowered GP margin outlook

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Hybe (352820.KS): Above consensus 2Q, yet lowered GP margin outlook

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29 Jul 2026 02:31:26 ET │ 12 pages

Hybe (352820.KS)

Above consensus 2Q, yet lowered GP margin outlook

CITI'S TAKE

Hybe reported 2Q26 sales of W1.45tr (+106% YoY) and OP of W171bn

(+159% YoY), resulting in 20% / 9% above consensus respectively, key

drivers being stronger-than-expected concert / merchandise revenue. Yet, Buy

GP margin slowed to 32% on back of higher artist direct involvement. We Price (28 Jul 26 15:45) W188,800

still remain positive on Hybe given strong fan-base demand for BTS / rookie

Ips leading to positive momentum for sales despite lowered GP margin Target price W350,000↓

outlook. Lower TP to W350k. Maintain Buy. from W380,000

Expected share price return 85.4%

Above consensus 2Q26 — Hybe reported 2Q26 sales of W1.45tr (+106% YoY) and Expected dividend yield 0.5%OP of W171bn (+159% YoY), resulting in 20% / 9% above consensus respectively. Key

drivers behind stronger-than-expected results came from 1) concert revenue of Expected total return 85.9%

W648bn (+243% YoY) from BTS comeback (resulting in higher ASP from better Market Cap W8,138,571M

regional mix and additional revenue from online concerts); 2) MD sales of W311bn

US$5,601M(+103% YoY) from much stronger demand (where we view there had been supply

constraints during 2Q) and 3) strong rookie IP’s album sales where Cortis first week

album sales recorded 2.31mn units. However GP margin came below consensus at

32% (vs. 35%-40% range) due to the increase in artist direct involvement sales

segment, leading to the OP margin of 12%. Despite the higher-than-expected 2Q26 Price Performance

results, share price showed weakness as we believe much focus was on the potential (RIC: 352820.KS, BB: 352820 KS)