[Click eStock] "Youngone Corporation, Surprising Earnings Even in Off-Season... Structural Market Share Increase"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 11th that it maintains a buy investment opinion and a target price of 70,000 KRW for Youngone Corporation, expecting structural market share growth to continue through this year and operating profit to reach last year's level.

Youngone Corporation reported sales and operating profit of 751.5 billion KRW and 122.8 billion KRW respectively in the fourth quarter of last year. This represents a 29% and 154% increase compared to the same period last year, marking a 'surprise'. The order volume in dollar terms for Original Equipment Manufacturer (OEM) increased by more than 60% year-on-year, and with the exchange rate rising by 6% during this period, the sales growth rate in KRW reached 69%.

Although sales declined by 12% year-on-year last year due to the COVID-19 benefit effect, operating profit surged approximately 157% as structural demand for electric bicycles increased and supply chain bottlenecks eased.

Yoo Jung-hyun, a researcher at Daishin Securities, stated, "Due to the global supply chain collapse causing supply disruptions, vendor consolidation is still ongoing, with large OEM companies experiencing greater order increases," adding, "Concerns about economic recession due to Russia's invasion of Ukraine and inflation have lowered expectations for order growth this year, but it seems feasible for annual orders to increase by more than 10%."

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