NH Investment & Securities on November 17 projected that entertainment-related stocks would benefit the most from next year’s treeconomics trend. The analyst noted that while entertainment equities have undergone valuation adjustments due to disappointment in Q3 results and a lack of near-term catalysts, the fundamentals and long-term prospects remain intact.

The entertainment sector is expected to be a primary beneficiary area under the treeconomics trend next year. Treeconomics describes a consumer tilt toward emotional rewards rather than practicality in an uncertain future.

The analyst explained that the background for the scarcity-driven demand seen in high-ticket K-pop concerts (around 200,000 won) and 30,000-won character keychains is rooted in treeconomics, with planned products and performances offering emotional payoffs such as satisfaction, immersion, and belonging due to scarcity.

He emphasized that the strong demand from fandom and high pricing power underpin a stable earnings trajectory amid macro uncertainty. The momentum to refresh investor sentiment is also viewed as abundant.

Looking ahead, he pointed to BTS activities resuming in the first half of next year at an unprecedented scale, with a high likelihood of BigBang’s 20th-anniversary world tour in the second half. The BigBang tour is framed as a marker of artist longevity, suggesting the industry’s long-term growth prospects could be reaffirmed and act as a catalyst for re-rating.

Among entertainment stocks, HYBE was highlighted as the top pick, driven by BTS’s large-scale world tour and ongoing subsidiary restructuring, which are expected to substantially improve earnings. In the medium-to-long term, the analyst forecasted that localization of artists would expand the total addressable market (TAM).