"Now Overseas"… Coway's Performance Growth 'Continues'

[Asia Economy Reporter Hyunseok Yoo] Coway's performance growth is becoming evident. Growth overseas is more prominent than domestically.

According to the financial investment industry on the 16th, Coway recorded consolidated sales of 879 billion KRW and operating profit of 170.7 billion KRW in the first quarter. This represents increases of 14% and 23%, respectively, compared to the same period last year.

The reason for the performance improvement is growth overseas. The contributions from the Malaysia and United States subsidiaries were significant. Jongdae Park, a researcher at Hana Financial Investment, said, "Malaysia's sales grew by 57% compared to the same period last year, driving the performance improvement," adding, "The increase in sales was large due to the rising proportion of financial lease products."

He emphasized, "The United States subsidiary's sales and operating profit increased by 58% and 121%, respectively, compared to the same period last year," and "With the expanded contribution of high-profit overseas business performance, the consolidated operating profit margin rose to 19.4%."

In particular, the growth of overseas subsidiaries is expected to continue. Jaegwang Lee, a researcher at Mirae Asset Securities, explained, "The high growth of overseas subsidiaries is expected to continue," adding, "This is because the expansion of mid- to low-priced water purifier sales in the Southeast Asian region is anticipated, whereas until now, the market had grown mainly with high-priced water purifiers."

According to FnGuide, securities firms' forecasts for Coway's sales and operating profit this year are 3.6062 trillion KRW and 644.8 billion KRW, respectively, representing increases of 11.39% and 6.33% compared to the previous year. Researcher Jongdae Park explained, "The combined operating profit ratio of the Malaysia and United States subsidiaries rose to 36% in the first quarter, acting as Coway's core growth engine," and added, "If COVID-19 eases, the full-scale launch of the Indonesia business is also expected."

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