Hanwha Investment & Securities said that despite the absence of artist activities, indirect participation sales recorded around 100 billion won in the quarter and operating profit reached around 20 billion won, proving its basic physical strength. The securities firm maintained its investment opinions of 'Buy' and the targe price at 290,000 won, respectively.
According to the securities, Hive's performance in the first quarter of this year was 178.3 billion won in sales and 21.7 billion won in operating profit, up 29% and 9%, respectively, from a year earlier. This is not far from the market expectation of 23.4 billion won.
"The artist activities decreased significantly due to the COVID-19, and the album fell 33% compared to the previous year, but music sales grew and there were no performances at all, but advertisements, appearances, and fan clubs maintained certain profits," said the securities firm.
Sales of Weverse, Hive's own fandom platform, have gradually expanded to KRW 14.4 billion in 2018, 78.2 billion won in 2019 and 219.1 billion won in 2020, and profits are accelerating with a successful turnaround with an operating margin of 7.1% in 2020.
Hive has been carrying out Naver's acquisition of Live and Ithaca Holdings since its listing on October 15 last year. In addition, global artists such as Black Pink, Ariana Grande and Justin Bieber are scheduled to enter Weverse sequentially within a year.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
