K-pop agency Hybe, home to popular boy band BTS, has been given an outperform rating by Bokyung Suh, director and senior research analyst at Bernstein. Suh believes in the long-term growth and macro trend of the K-pop industry, citing the increasing investment by global players such as Disney, Netflix, and Spotify in K-contents. He estimates that there are around 500 million K-pop fans worldwide, and this number is expected to grow. Suh specifically chose Hybe due to its intellectual property diversification, which allows the company to sustainably run its business. Hybe’s revenue is predominantly driven by BTS (32.8%) and boy band Seventeen (30%), while newer groups like Tomorrow X Together and NewJeans also contribute to its earnings.
The recent contract renewal between Hybe and BTS has eased concerns about the company’s long-term growth story. The band’s contract, originally set to expire in 2024, will now continue for an undisclosed period of time. This development demonstrates Hybe’s strong talent management capability and transparent investor relations practices, according to Suh. On the other hand, media reports stating that three out of four members of girl group Blackpink would not renew their contracts with YG Entertainment caused shares to decline. As some BTS members will soon begin their mandatory military service, Suh anticipates the band’s reunion and its impact on Hybe’s balance sheet to occur around early 2026. Overall, Suh’s positive outlook for Hybe is driven by the increasing global interest in K-pop and the agency’s successful IP diversification strategy.
