Winia Dimchae, Soaring to Record-Breaking Performance... Stock Price Hits All-Time High Rally

Suspended Trading for Inflated Sales Early This Year
Record High Sales Due to COVID-19 Special
Stock Price 6,380 Won, Up 60% in One Month

[Asia Economy Reporter Park Jihwan] At the beginning of this year, home appliance company Winia Dimchae faced the risk of delisting after being suspended from stock trading due to allegations of inflating sales, but it is now making a dramatic turnaround. Along with rapid performance improvement and product lineup expansion, its stock price has also recently surged significantly.

According to the Korea Exchange on the 4th, Winia Dimchae's stock price rose 60.3% from 3,980 KRW at the end of March to 6,380 KRW yesterday. The stock price surpassed the 5,000 KRW mark at the end of last month, setting a new record high since the free capital increase in August 2017. This month, it has settled in the 6,000 KRW range, continuing its upward trajectory.

In January this year, Winia Dimchae was found by financial authorities to have recorded false sales amounting to 67 billion KRW by arbitrarily adjusting returned and exchanged products in the company’s computer system during the accounting process from 2015 to 2017. As a result, Winia Dimchae’s stock trading was suspended, and it faced delisting, but it narrowly avoided delisting by actively implementing administrative measures and recommendations from the financial authorities, including the dismissal of executives.

The recent rise in stock price is due to clear growth in performance. Last year, Winia Dimchae recorded its highest-ever sales just one year after recovering from losses in 2019, thanks to strong home appliance sales driven by people spending more time at home due to COVID-19. Last year’s sales grew 17% year-on-year to 875.6 billion KRW, and operating profit increased by 141% to 49.7 billion KRW. This represents more than double growth within a year after moving from a 1.2 billion KRW loss in 2018 to operating profits in the 20 billion KRW range in 2019.

This year, sales of key products are expected to continue strong. First-quarter sales reached 217.3 billion KRW, a 60% increase compared to the previous year, and operating losses narrowed by 93% to 1.2 billion KRW. If the current trend continues, cumulative operating profits are expected from the second quarter onward. Annual sales are forecasted to increase 17% year-on-year to 1.0227 trillion KRW, and operating profit is expected to rise 22% to 60.4 billion KRW.

Park Jaeil, a researcher at Kiwoom Securities, said, "The company has growth momentum due to continuous product lineup diversification, including window-type and portable air conditioners, large and premium refrigerators, high-capacity washing machines and air purifiers, and dehumidifiers."

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