In today’s briefing:
- HYBE: Korean Govt Mandates BTS Members to Enlist in Military – 50% Further Downside Risk Ahead
- BioNote IPO Valuation Analysis
HYBE: Korean Govt Mandates BTS Members to Enlist in Military – 50% Further Downside Risk Ahead
- On 17 October, the Korean government made a final official decision to have the BTS members serve in the mandatory military service.
- We believe this will have a major negative impact on the sales and profits of HYBE in the next several years.
- As a result of the Korean government formalizing the BTS members to enlist in the military, we believe that HYBE’s share price could fall more than 50% from current levels.
BioNote IPO Valuation Analysis
- Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range.
- We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023.
- Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO.
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