BTS’ Butter Wins Hearts; Can HYBE Stocks Be A Big Hit For Investors?

2 min read | May 26, 2021 11:27 AM EDT | By Team Kalkine Media

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BTS’ Butter Wins Hearts; Can HYBE Stocks Be A Big Hit For Investors? — Image source: Pixabay

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K-Pop band BTS’ latest single is yet another worldwide chartbuster. With over four million views, ‘Butter’ is already breaking world records since its release on Friday, May 21.

Within 24 hours of release, the song became the most streamed music video on YouTube and the most streamed track on Spotify with 11 million streams.

This latest feat has lifted the stocks of HYBE Corp Ltd (KRX: 352820), earlier known as Big Hit Entertainment Co Ltd, the entertainment brand behind the seven-member boy brand.

The company went public in October last year and the boy band, who are key stakeholders in the entertainment company, own about 478,695 shares in the entertainment company. BTS reportedly accounted for about 88 per cent of Big Hit’s revenues in the first six months of 2020.

Let’s dive in to find if this entertainment stock can continue to be a ‘big hit’ for investors:

Source: Pixabay

HYBE Corp Ltd Stock (KRX:352820)

Stocks of HYBE Corp, formerly Big Hit Entertainment, has fetched returns of over 50 per cent since in the last six months since its listing on the Korean Stock Exchange. The stock dropped 0.58 per cent on Wednesday, May 26, closing at KRW (South Korean won) 2,59,000, which is roughly about C$ 280.

The stock has returned over 63 per cent, year-to-date, to its investors.

The boy band-owned company has a market capitalization of about US$ 8.4 billion, after its shares listed at double their issue price last October. The stock, which is also a part of the Korean Stock Exchange’s benchmark index, Korea Composite Stock Price Index or KOSPI, has an average daily trading volume of 387,000.

The South Korean entertainment production company’s net income gradually rose over the last couple of years. It reported nearly five per cent rise in year-on-year (YoY) net income for the fiscal year ended March 2021, up from net loss in the previous fiscal.

The company’s net revenues also jumped about 6.7 per cent YoY to touch US$ 719,882 in March 2021, as per Pitchbook data.

However, the company’s revenues, which largely depend on BTS, may be impacted as the band members will soon enter their mandatory military service tenure. The entertainment company will require diversified revenue streams to ensure its profitability in future.

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