HYBE plunged on Wednesday, setting a new 52-week low. This is seen as the aftermath of concerns over the erosion of overseas business profits due to a stronger won being highlighted when the company released its preliminary Q3 earnings.
HYBE closed at 138,000 won on the Korea Exchange, down 17,900 won (11.48%) from the previous trading session. The intraday low was 136,500 won, a drop of 18,500 won (11.94%).
HYBE disclosed after the regular trading session on the previous day that it recorded Q3 consolidated revenue of 1.5257 trillion won and an operating profit of 188.5 billion won. Revenue increased by 109.8% year-on-year, and operating results turned to a profit, with the operating profit exceeding FNGuide's consensus estimate by 14.6%.
However, HYBE's Q3 net profit was only 11.3 billion won (a turn to profit from the same period last year, but an 89.7% decrease from the previous quarter), falling short of the consensus estimate by 90.53%, which heightened market concerns.
Non-operating expenses reached 148.2 billion won in Q3 (a 226.90% increase from the previous quarter), causing the net profit shock. Securities research analysts explained that this was the result of a large amount of foreign currency translation losses being reflected due to the sharp drop in the won/dollar exchange rate.
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