[Click eStock] "Sidiz, Significant Increase in Operating Profit in Q2"

[Asia Economy Reporter Eunmo Koo] Sidiz's operating profit in the second quarter of this year significantly increased, driven by a rise in the sales proportion of its online division.

Sidiz's sales in the second quarter of this year reached 53.6 billion KRW, up 16.0% compared to the same period last year. Operating profit surged 372.2% to 5.9 billion KRW, and net profit rose 232.3% to 5.0 billion KRW. Based on the first half of this year, operating profit totaled 10.2 billion KRW, already surpassing last year's full-year operating profit of 8.6 billion KRW. On the 18th, Jeong Hongsik, a researcher at Ebest Investment & Securities, explained in a report, "The increase in operating profit is estimated to be due to the higher sales proportion of the relatively more profitable online division, and internal management strategy changes that reduced advertising and promotional expenses, resulting in cost-saving effects."

Sidiz's valuation (stock price level relative to performance) is based on the most recent four quarters' results, with a price-to-earnings ratio (PER) of 9.2 times and a price-to-book ratio (PBR) of 2.9 times, holding net cash of 12.2 billion KRW.

Sidiz is the leading chair manufacturer in the domestic market (major shareholder Illoom 40.6%) and owns the Sidiz brand. In April 2018, Sidiz acquired the entire chair business of Teams (acquisition price 31.8 billion KRW; results before Q1 2018 belong to Teams) and changed its company name from Teams to Sidiz. Within the Fursys Group, Sidiz is responsible for chair production, with sales proportions in the first half of this year as follows: Fursys 23.3%, Illoom 12.8%, exports 8.7%, offline approximately 25% to 30%, and online approximately 25% to 30%.

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