[Click eStock] "Spigen Korea Benefits from Foldable Phone Launch... Earnings Surprise Expected This Year"

[Asia Economy Reporter Hyunseok Yoo] ResearchAlum analyzed on the 20th that Spigen Korea is expected to achieve an earnings surprise this year due to the launch of 5G smartphones and new foldable phones. The investment opinion was 'positive', and the target price was set at 77,000 KRW.

Spigen Korea, established in 2009, is a mobile accessory specialist company that was listed on KOSDAQ in 2014. Its main products are smartphone cases and peripherals. These are mainly sold worldwide through platforms such as Amazon, eBay, and Walmart Online.

Researcher Seonghwan Choi of ResearchAlum said, "Despite the global mobile phone shipment volume showing a declining trend since 2016, Spigen Korea continues external growth through active market share expansion. Early last year, it launched the women's brand ‘CYRILL’ to enter the high-end case market, and in June, it invested about 12 billion KRW to acquire the low-cost case business unit (Caseology) of the US company ‘ModneInc’, expanding its lineup."

He explained, "This year, a large number of 5G smartphones and new form factor smartphones are scheduled to be released by global handset manufacturers, which is expected to heighten interest in cases. Since 5G global commercialization is actively promoted in the US, China, and other countries from this year, the iPhone 5G model to be released in the second half of the year is expected to stimulate replacement demand from 4G iPhone users." He added, "Considering that about 50% of Spigen Korea’s case sales are for iPhone products, a positive impact on performance improvement is anticipated."

Growth in the Asian region is also expected. He emphasized, "Since last year, Spigen Korea has been strengthening marketing in Asian online markets where its market share was previously low. In the first half of last year, it entered China’s Tmall and Japan’s Rakuten, and in the second half, it entered India’s Flipkart, all of which are the number one e-commerce platforms in their respective countries. Meaningful growth in the Asian region is expected from this year."

ResearchAlum forecasted that Spigen Korea’s sales and operating profit this year will reach 356.1 billion KRW and 56 billion KRW, respectively, increasing by 18.2% and 20.2% compared to the previous year. He said, "From this year, profitability improvement is also expected along with external growth, as the launch of high-spec smartphones is expected to increase the proportion of premium case sales, and price increases based on brand loyalty are planned."

He added, "The average selling price (ASP) of Spigen Korea’s products has been steadily rising, and this year, the increase in ASP is expected to be greater due to the expansion of sales of the high-end women’s brand."

This content was produced with the assistance of AI translation services.