De-rating overdone: Strong fundamentals and valuation trough present favourable opportunity to accumulate the stock

研报英文原文证据摘录

De-rating overdone: Strong fundamentals and valuation trough present favourable opportunity to accumulate the stock

Global Markets Research

HYBE 352820.KS 352820 KS 28 July 2026

EQUITY: INTERNET & NEW MEDIA

RatingDe-rating overdone Remains Buy

Target priceStrong fundamentals and valuation trough present Reduced from KRW 250,000favourable opportunity to accumulate the stock KRW 400,000

Action: Maintain Buy; cut TP to KRW250,000, implying 32.4% upside Closing28 July 2026price KRW 188,800

We maintain Buy, while cutting TP by 38% to KRW250,000, reflecting a target PE reduction from

35x to 25x. The stock has pulled back 53% from its Feb 19 peak (KOSPI up 6%), driven by post- Implied upside +32.4%

comeback profit-taking and broader equity market volatility as capital rotated into tech sectors.

However, we view the current valuation contraction as excessive. Excluding the trough of 2H22 Market Cap (USD mn) 5,574.8

when BTS unexpectedly announced a temporary group hiatus, HYBE has rarely traded below 25x ADT (USD mn) 43.4

forward PE since its 2020 IPO. Today’s fundamentals and earnings visibility are substantially

stronger than in 2022, in our view: earnings are backed by an active BTS stadium tour alongside a Relative performance chart

diversified, highly monetizable multi-label structure featuring fast-growing next-get IPs like Cortis and

KATSEYE. We believe the current trading multiple of 16x FY26F EPS of 11,713 offers a prudent

opportunity to accumulate the stock. Key downside risk: Weaker-than-expected fandom

monetization from young IPs.

Historic 2Q26 powered by BTS return and multi-label strength

HYBE’s 2Q results significantly outperformed, with revenue doubling y-y/q-q and OP beating

consensus by 10%, driven by the full-scale kickoff of BTS’s world tour and broad-based