Strong Q2 earnings beat overshadowed by margin debate

研报英文原文证据摘录

Strong Q2 earnings beat overshadowed by margin debate

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artists such as Cortis and KATSEYE could provide a similar catalyst for multiple expansion over time.

EVIDENCE The Arirang world tour spans 82 stadium-scale shows across 34 cities with a 360-degree open stage

configuration designed to maximize capacity. KATSEYE has achieved Billboard Hot 100 and Global

200 chart entries and is touring N. America with add'l festival appearances in Latin America. CORTIS'

debut album recorded ~440k first wk sales and entered the Billboard 200 at #15 while surpassing

>100mn Spotify streams within one month. SANTOS BRAVOS, HYBE's Latin boy group, sold out its

debut concert at Mexico City and generated >70k concurrent viewers at its launch showcase.

WHAT´S PRICED IN? Share price has corrected about 40% YTD due to concerns on margin pressures. The stock is trading

at 25x 2027E PE, below its historical average of 35x. We think the lower margins are priced-in but the

upside from younger artists and additional BTS concerts are yet to be reflected.

Upside/Downside

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Value drivers 2027E Revenue growth 2027E Gross Profit margin Target PE multiple

Won356,000 upside 0% 32% 35x

Won310,000 base -6% 33% 35x

Won140,000 downside -6% 30% 27x

Source:

Company Description Established in 2015, HYBE is the No. 1 multi-national entertainment company in Korea in album sales

as of 2025. The company comprises HYBE headquarters in Korea, HYBE AMERICA and HYBE JAPAN,

and its business divisions include record labels (Big Hit Music, Source Music, Pledis Entertainment and

Belift Lab), solutions (IP, videos, games, etc.) and operating one of the biggest fan platforms,

Weverse.