[Click eStock] "Riding Population Increase... Samchully Bicycle's Best Performance This Year"

[Asia Economy Reporter Ji Yeon-jin] Kiwoom Securities announced on the 11th that Samchuly Bicycle is expected to record its highest performance this year due to the continuous increase in bicycle demand following lifestyle changes and the effect of structural adjustments leading to higher selling prices.

Samchuly Bicycle, a bicycle manufacturing and sales company, holds the number one market share in the domestic bicycle market. As of last year, its overall market share was 45%, reaching 90% in the children's bicycle segment. It has a product lineup including bicycles, electric scooters, electric kickboards, and strollers, with bicycles being the main source of sales.

The bicycle brands include PHANTOM (electric bicycles, electric kickboards), CELLO (road, mountain bikes, gravel), APPALANCHIA (road, mountain bikes, fixies), LESPO (children's, hybrid, city, folding), and ALLUS (bicycle accessories).

As of last year, the sales composition was 92.4% bicycles and 7.6% strollers. The company has a diverse product lineup ranging from children's tricycles to professional road and MTB bikes, releasing about 100 new products annually. This year, 17 types of electric bicycles and 93 types of regular bicycles, totaling 2110 new products are expected to be launched.

Researcher Park Jae-il of Kiwoom Securities stated, "Since 2020, there has been a trend shift from road and hybrid to MTB, leading to increased demand for high-end bicycles, and lifestyle changes have driven up demand for electric bicycles. In 2021, sales growth is expected to focus on electric and high-end products."

Following the 2018 revision of the Act on the Promotion of Electric Bicycle Use, which allowed electric bicycles to use bicycle lanes, the electric bicycle market has been growing by more than 30% annually. The demand for electric bicycles for commuting and delivery due to COVID-19 is expected to accelerate this growth. Samchuly Bicycle's electric bicycle sales were 5 billion KRW in 2018, 7.4 billion KRW in 2019, and 13.4 billion KRW in 2020, with an estimated 21.5 billion KRW this year.

This year's consolidated performance is expected to achieve record highs with sales increasing 17% year-on-year to 141.3 billion KRW and operating profit rising 97% to 21.5 billion KRW. Researcher Park said, "Although there are supply issues with Shimano parts, a global crank gear manufacturer, due to COVID-19, the company is unlikely to face production disruptions thanks to prior inventory procurement." He added, "Demand continues to increase even in the off-season first quarter due to dealer pre-orders and deferred buyer demand from inventory depletion, and this trend is expected to continue this year."

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