BTS is Coming to Gwanghwamun…! Everything About Entertainment Stocks | Lee Ki-hoon, Senior Research Fellow, Hana Securities Research Center

Summary

Lee Ki-hoon of Hana Securities discusses the Korean entertainment sector, with HYBE as the top pick on BTS's long world tour, strong ticket demand, and a pipeline of new groups such as CORTIS and KATSEYE. YG Entertainment is viewed positively if a Big Bang 20th-anniversary comeback is officially scheduled, as estimates do not yet reflect it. The interview also turns to inbound tourism, where the speaker is bullish on Korean hotels and casinos because Chinese visitor flows are shifting back to Korea.

• HYBE is highlighted for BTS's roughly 1.5-year tour, earnings visibility into next year's second quarter, and upward operating-profit revisions.
• The speaker sees CORTIS and KATSEYE as new HYBE IP catalysts and cites a KRW 450,000 target under current assumptions.
• YG Entertainment is next in line, with Big Bang's 20th anniversary and YG's 30th anniversary as potential event catalysts once dates are official.
• The speaker prefers HYBE and YG over making a uniform bullish call on the whole entertainment sector.
• Chinese inbound tourism is expected to recover, benefiting Korean hotel and casino demand.
• Seoul hotel occupancy is already near full, and about 80% of visitors to Korea concentrate in Seoul.
• The discussion also touches on Big Bang's likely three-member comeback and the market's lack of estimates for it.