[Click eStock] "Samchully Bicycle, Electric Bicycle 'Phantom' Sales Strong... Revaluation Expected"

[Asia Economy Reporter Hyunseok Yoo] NH Investment & Securities analyzed on the 12th that Samchuly Bicycle is expected to be re-rated due to strong sales of the electric bicycle Phantom. No investment opinion or target price was provided.

Samchuly Bicycle recorded sales of 44 billion KRW and operating profit of 9.5 billion KRW in the first quarter. Compared to the same period last year, sales increased by 83.2% and operating profit rose by 518.1%.

Baek Joon-gi, a researcher at NH Investment & Securities, said, "They recorded an earnings surprise that significantly exceeded market consensus," adding, "The main reason is that all major brands, including Lespo, Apalancia, Phantom, and Cello, achieved sales growth of around 100% compared to the same period last year." He further noted, "Since COVID-19, the overall base of bicycle consumption has expanded, and most of the bicycle inventory from 2020 has been depleted."

NH Investment & Securities expects Samchuly Bicycle to achieve strong performance in the second quarter as well. The expected sales and operating profit are 162.5 billion KRW and 26.8 billion KRW, respectively, representing increases of 34.5% and 146.0% compared to the same period last year.

He explained, "It is positively judged that the growth of high-end bicycle lineups (such as Cello and Phantom) is meaningfully contributing to sales growth," adding, "Recently, due to the logistics crisis, the supply shortage of imported brands has intensified, leading to a shift of interest to domestic brands, which partially acts as a reflected benefit for the company."

In particular, the sales growth of the electric bicycle brand 'Phantom' is expected to serve as a revaluation point for Samchuly Bicycle. He said, "The number of units sold of the electric bicycle brand ‘Phantom’ was only 4,000 in the first quarter of last year but increased by 78% to 7,100 units in the first quarter of 2021," adding, "Phantom has an average price of over 700,000 KRW, which results in more than three times the sales increase compared to regular bicycles."

He emphasized, "Phantom is expected to grow to about 30,000 units annually by the end of this year," and added, "With the revision of the Road Traffic Act in December last year expanding the use of electric bicycles on bicycle roads, expectations for B2C electric bicycle growth remain valid."

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