[Click eStock] "Youngone Corporation, 1Q Earnings Significantly Exceed Expectations... Unusual Despite Off-Season"

[Asia Economy Reporter Lee Jung-yoon] NH Investment & Securities maintained a buy rating and a target price of 75,000 KRW for Youngone Corporation on the 17th, stating that the company's first-quarter earnings this year significantly exceeded market expectations.

Youngone Corporation's first-quarter sales this year amounted to 766.4 billion KRW, a 35% increase compared to the previous year, and operating profit rose 97% to 145.9 billion KRW. The OEM (Original Equipment Manufacturer) division recorded sales of 433.8 billion KRW, up 69%, and operating profit increased by 18 billion KRW to 103.1 billion KRW. The division achieved a 56% growth rate in dollar terms, reaching peak season performance unusually during the off-season without deferred volume.

Jung Ji-yoon, a researcher at NH Investment & Securities, explained, "Orders from top-tier buyers generally increased, and Youngone, which has strengths in outdoor and woven products, diversified its product range by increasing order acceptance rates for functional knits and trouser pants in the spring/summer (S/S) season, which is positive." She added, "Thanks to high order growth and the benefit of the rising USD-KRW exchange rate, the OEM profit margin reached 24%, significantly strengthening profit resilience compared to the average first-quarter profit margin of 14% over the past five years."

Additionally, the brand division posted sales of 332.5 billion KRW, up 7%, and operating profit of 42.8 billion KRW, a 15% increase. Although there were concerns about a high base effect due to the strong growth of the bicycle brand Scott in the first quarter of last year, margin rates were defended through high full-price sales rates and price increases for new products. Researcher Jung noted, "Despite ongoing global supply chain disruptions in the first quarter of this year, the secured inventory translated into sales, indicating steady demand for bicycles."

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